Now that Plex finally has Collections - can we make use of MCM's collections functionality to actually work for Plex too? (not just for Emby where it's based on folder structure and not tags)

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You can add it to the Issue Tracker.

We're currently fetching collections as a separate metadata when you organize your library in collections (nested folders) and storing the collection ID from TMDb for Emby as CollectionNumber (and duplicated as TMDbCollectionId, as it's historically used either at one poitn in time), so some extra work would need to be done to translate a collection # to the collection name that goes into the set XML field in the NFO file for Kodi and Plex.

Certainly doable, but the metadata isn't already fetched, so it's a few steps away from happening immediately.

This is now supported beginning with Media Center Master version 2.18 build 4518.868 (will need to refetch affected movies) and Plex MCM agent version 1.4.1.