My method includes 1 rule. I find it absolutely glorious. I found that all of my complaints and inability to manage my inbox really came down to one thing (for how my brain works, at least) - my mail became physically dispersed and would break my search. Rule changes would only complicate the formula, and I found myself hitting the max number of rules too often. So:

: 1 Inbox
: 1 "Other" folder
: 1 Rule to send everything to "Other" w/exceptions for:
- me in To or CC
- To and From people or groups I must always read (boss, HR, company-wide, etc)
: Targeted Smart Search folders that I can easily tweak for immediate and ideal results as I join and leave new team, gain and lose responsibilities, etc.
- Directly to me (maybe my one rule failed for some reason and sent it to Other)
- Team1 (based on group address, subject line, or wherever else makes sense)
- Keyword1 (allows me to be group email agnostic and only focus in themes)
- Person1 (sort of like "following" someone, but don't need in my inbox)

The options are endless. :)