If I had multiple-genre support, or the ability to search against artist and genre together (the way iTunes's works) to make smart playlists, i might not need the hierarchy I sometimes keep in separating the live albums from the studio originals. It is a bit of a mood thing - some days I want the live stuff included in a shuffle, some days I don't. Usually I do if I'm only playing one band, but don't if I'm playing a set of bands.
In the case of my Robert Fripp soundscapes (hey, I collect) I have dozens. The one folder would become unwieldy. I sort them by tours, so I have Soundscapes->June 2004 G3->albums by date. Note "Robert Fripp" doesn't even show up, as it is redundant to the Soundscapes, and I keep his named folder for his 70s albums like Exposure instead. Using my idea of a 'unique artist' deep association, he would still be the artist for those folders, which is why I'm starting to like that idea more and more as I think on it.
--
but your description of how you would like it I'm thinking is just the basic Index->Artist->Albums tree, which as I said the API supports and it works very well, but it isn't part of the Web UI view and I don't know how easy it would be to add that as an optional top-level page.