Hey DLR,
That's a pretty good idea, but I'd try and condense some of the stuff into as few bags as possible. Your signaling and navigation could probably be combined, same with shelter/firemaking and survival stuff. I used to try and organize my stuff into separate bags like what you mentioned, but I found that having so many different bags wasn't much better than just throwing all must stuff in there loose. I guess it all depends on how much stuff you are carrying and what size bag you have. For a large backpack, it would work, but for a something the size of a daypack I think that 8 different bags is just too much.
For one thing, most of my items already come in some sort of carrying case, so by putting them in a bag, all I was really doing was adding unecessary weight and complication, because now to get to an item I would have to open my backpack, find the right bag, open it, find my item, and once again open the case. Just ended up being more trouble than it was worth, especially for items that are already self contained in their own case (like a first aid kit or water filter). Unless each bag contains a lot of smaller loose items, I don't think it would be much of a benefit
Right now, I have cut it down to about 4 bags. I guess you can say they're color coded, since i alwasy use the same bags each time, but I didnt' really plan that out ahead of time. One bag has extra clothes (thermals, hat, socks, gloves, etc), one bag has food, one bag has emergency items that I probably won't use very often (first aid kit, water filter, survival stuff, multitool, etc), and the last bag has stuff that I plan on using somewhat frequently (flashlight, map, compass, etc). Anything that I need quick access to or use a lot is just thrown in on top or outside.
The clothes bag and emergency equipment bag always stay in my backpack, whenever i decide to go hiking I just throw in some food and my frequent use bag. I picked up most of my bags at a garage sale, and have made a couple silnylon bags from leftover material from some other equipment. If you do plan on going the custom route, make them as light as possible because the weight of the bags do add up. No need for 1000D Cordura for something that just sits inside your backpack. Also, I started taking out all the heavy sheaths from my multitool and flashlights and throwing my stuff in the bag loose. I didn't think it would matter much, but once I started removing the extra "packaging" it made quite a difference. I'm not an ultralight hiker (probably as far from it as possible) but I hate carrying extra weight.