Completely agree.
Additionally, they should sort by weapon type and light too. For example, Kinetic sorted by light, then Energy by light, Power by Light, then say Helmet, Chest, Gloves and Boots.
Bungie Devs should go to :
https://app.destinyitemmanager.com
To see how it's done properly.
Lastly, please RETAIN the current Sort selection too. Right now, as soon as you click on an item or close the Vault, you lose your Selected Sort.
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This!