Chris,
I see what you're attempting, and I appreciate the effort. Unfortunately, what you're doing is justifying bad design. The screenshot you posted does show the albums grouped by artists, but in a way that really doesn't appeal to me.
You could do that same thing in iTunes 10.7 and the problem with it is that it's cluttered with songs, and this list along the side. When I am searching for music, I only need basic information.
1. Artist Name or Letter "B"
2. Album Art / Album
I can browse a list quickly and effectively this way. In iTunes 10.7 I had this ability, and now I don't. It means that it is no longer an effective way for me to view my music/movies. This is why I have downgraded to 10.7.
I understand what you're saying with movies, but please understand that the reason they were grouped that way was because while Batman is technically an action movie, I actually had it tagged as Batman, not Action because I wanted the four movies grouped independent of the other action movies.
I understand the concept of Genre, but this is not what I was going for. Again, in iTunes 10.7 this was not a problem, and now it's impossible.
For me iTunes 11 is not the right tool for the job, and untill they add back in features that allow me to display my media in a way that works for me (Grouping, Album Art Size), I'll have to stick with 10.7.