Question about site structure

I have a question about the way in which the retail websites I manage are structured, from a Google friendly perspective.

The building platform I use only introduced 'product filters' in January last year. The websites were constructed years before that. When I built the sites, the only way I could structure the category pages was to have one page per category as sub-menus, which are sub-menus of a main menu webpage.

The main menu webpage is just a user friendly page which contains links to all of it's sub-menu category pages.

I have used the product filters on each category page which makes for a better user experience.

I can also now create pages of filtered products and give them a unique (clean) url. For example:
mysitedotcom.au/camping-equipment-tents. However, I can only filter tagged products from within that category.

So in theory, could I create one big category (let's say 500 products) and create 10 sub-category pages using filtered products, as my sub-menu pages? Is there any benefit in doing that rather than what I have now? Does Google have a problem with filtered pages?

The way the sites are set up now, we get really good organic ranking, so I wouldn't want to ruin that. But, I'm always on the lookout for better ways to do things.

Or is there a better alternative?
Thanks!
 
Thanks for that article. What I get out of that, is that it's more important that the content of the page I link from, needs to be relevant to the page I link to and vice versa. The article talks about sub-menu links to secondary categories but doesn't really touch on links via webpage content.

I'd really like to know if there is a difference between the two structures.
 
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