Sorry, not entirely sure what the proper name for it is. I’m talking about the right hand panel in the workspace where you create VST instances. On Windows you Control-Shift R to show/hide.
I currently have 26 VSTs in that panel. It would help A LOT if I could just drag them up and down to organize them. Bonus points for being able to color them.
You can’t at this stage, unfortunately.
It would be great, of course to have this ability, since you can move tracks around freely, and for the mixer but not the VST Instrument Rack.
Though this is not working as you correctly state, it is doable using Studio→VST Plugin Manager. There we can create collections of our VSTs and sort them however we want.
Here’s for example a screenshot of my right section right now:
As you can see I have even added vst screenshots for better viewing 
I don’t believe you can change the order of instruments in that rack.
Personally, I never use this VSTi rack at all. What are you using it for? Perhaps there are other ways of accomplishing what you need without it.
@m.c I believe they’re talking about the VSTi rack in the Right Zone of the Project Window…?
Yes. And if you create a custom collection in the plugin manager, it will show up in this zone the way you designed it. If you check my screenshot, you’ll see for example the spectrasonics collection above the Ni’s. This is because I sorted them this way. Inside the collections, I still perform sorting based on how frequently I use these plugins.
EDIT: I read more carefully and seen the shortcut, you’re absolutely right! I never use racks so I thought we were talking about the collections, my bad
There are two “racks” in the project window right zone, the VSTi rack and the Media rack.
In @m.c 's screenshot, the Media rack is shown, and that does indeed follow the sort order of the selected plugin collection, so, if that’s what the OP wanted, then that is the solution.
On the other hand, the VSTi rack shows VSTis that have already been loaded and added to the project; I don’t know of any way to sort the order these are displayed in, other than to add them in the order required (which will not always be known beforehand).
No. Although I can imagine that it’s a complex task (routing etc) I have often wished it were so. Can Cubase allow rearranging of channels via the mixer console yet? Now that would be modern.
