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Descriptive URL Structures Options + SEO

I would like to see Netsuite offer a url structure of "/preferred-category/item_url_component". The query string could still identify the current category that is being browsed so as to make the menu stay in that category. I think this could be valuable for SEO. When we started with NS the "/tab/category/item" format resulted in large amounts of duplicate content, which is why we're using the "/item" structure currently. If I understand, this is now corrected with the rel=canonical tag which will point to the URL with the preferred category's URL component as the category portion of the URL? If I understand

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