Tony had a post like this some time back. I've found that there is little point in having playlists with Artists - Albums - Tracks and I've eliminated most of the Albums, so Tracks appear directly under Artists. If I think I want to hear a particular Artist, I can just call up the playlist. If I want to listen to a particular Album, I'll do a search.
Generally I just call up a playlist and skip the tracks I don't feel like.