I've posted before about this, & have requested that Image Manager have more collapse options, doubt it will happen so we skip Image Manager & do it ourselves:
CI's @ 15mins, between 8-6 M-F.
Every weekend we collapse anything older than 28days into a new base, delete the original base & related incrementals & re-name the new base file to the original base file name.
The backups continue fine after that.
Combined with our tape schedule, we have 28days worth of Incrementals on disk, forever's worth of Increments on tape.
Yes the collapse process of a new base is time consuming, but in our case it's effectively offline anyway, doesn't affect any production servers & still fits well within a normal backup window anyway. The Image Manager option in our opinion is just delaying the inevitable, eventually, you'll have to do *something* with all those files. We prefer to deal with them the way we have since Image Manager doesn't gives us the option.