I expect they'd work fine in the Playlists menu, but the Organise menu would behave oddly.

Wait. So right now, we have hierarcial playlist capabilities on the Karma?

I might buy one soon then. This is the big thing stopping me so far, since I have had the empeg mentality for quite a long time. I do understand that this would not be supported at this time, similar to the v3 alpha, but at least it is an option.