Though, by naming Playlists with album names I can see all my albums in one list…)
All albums are already in a single list up top in the browser.
I should have also mentioned that I'm getting ready to buy my first iPod, and I'd like to have my playlists (albums by artist) alphabetized LOGICALLY (i.e. "Dylan" under "D" not "B").
You can view by Artist or by Album. Go to an Artist and you will see all albums by that artist.
About using many playlists.
Playlists are contained in the *iTunes library.itl* file and the *iTunes library.xml* file.
The more playlists you have, the larger these files are.
iTunes rewrites these files many times per session.
Any time you play a song, finish a song or skip a song, create, edit or delete a playlist, edit any tags, add/delete songs in the library, reorder a playlist, add artwork and other actions, iTunes will rewrite these files _after every single event_.
The larger these files are, the longer it takes to rewrite them over and over.