The glory of the empeg is that you don't have to pick one way. Try it every way and see which ones you end up using, and stick with them.

Personally, I keep a "By Artist" and a "By Album" playlist as my main ones. Them I have random mixes, audio books, and people playlists.

Personalized "people" playlists is the best way to convert a sekeptic, if you know what their taste in music is. They get in the car, you pick out their playlist and they're getting songs that only they like. I've got one friend who only likes whole albums, so her playlist is randomized albums, the other couple I've got are just tracks.

Matthew