No it wouldn't, unless I'm not reading this right. If you drop a folder from Windows Explorer onto a playlist, it should create a playlist heirarchy the same as your directory heirarchy. If this is broken, shout.

At no point did it automatically create playlists based on the tags within those files.

If you're talking about dragging a folder from the Artists tree onto a playlist, it's broken. It really ought to create a complete heirarchy, but it doesn't. However, this feature wasn't in v1.03, so I'm confused about what you're referring to.

Also, if a tune isn't in a playlist, you can get to it (in emplode) in the automatic Artists/Albums/etc. trees. At the bottom is the "All Tracks" item.

On the player, you have to use the search button. We're going to implement the other views at some point after v2.0 is released.