I was in this conversation early on when I discovered my newish Nano would not update playlists with Apple Music tracks within them. I have subscribed and have been reading and replying to this thread.
Solution for me will be to buy an iPod Touch for the car [like another poster, I like to have my playlists in the car, but keep them separate from my phone]. The nano will be listed on the healthy ebay marketplace 🙂
Apple did make this clear as Apple Music launched, I realise, see Add music from the Apple Music catalog to your library - Apple Support published on June 30th - the launch day.
So Apple will get more from me for the Music sub plus more hardware . . .
[Also I have a perfect condition 8Gb nano 3rd gen, worth about USD20, might keep this until a museum calls me! ].
Regards,
Tony