So while the home sharing "fix" worked for me, I also had a problem with over 1 GB of memory that suddenly became "other" (i.e. corrupted?). This has never happend to me in my years of having an iPod/iPhone until the ios7 update. So I figured I would try a restore and see if that fixed the other issue as well as the playlist syncing issue.
After the restore, however, I got the same problem many of you have where it wouldn't sync anything - my apps, my music, etc. It got hung up completely overnight and wouldn't load anything. I also couldn't get iTunes to start up after shutting it down after the failed sync.
I tried uninstalling Bonjour, which I believe is responsible for AirPlay and makes your AppleTV work with your computer (?). Tried syncing, and everything worked. I have all the correct playlists (the ones that are supposed to be on my phone) and I don't have to do the Home Sharing fix. All my songs show up correctly.
So maybe if you are getting the syncing problem, try uninstalling Bonjour? Of course, this likely means my AppleTV now won't work and I still have this "other" corrupted memory that I would like to reclaim, but it somewhat fixed the problem for now.