You make a good point about keeping the heirarchal playlists simple or "invisible" so that people who don't want to use them do not have to. The way to deal with this is to create like a "browse folders" option under all of the other id3 tag soup list options. For example, the listing after genre could be folders, or browse folders. I use the linksys media b wireless adapter to stream music wirelessly to my home theatre system at home, and this is the way they handle incorporating both soup views and the capacity to browse by heirarchal playlists. Works quite nicely.
James