I was about to post the same thing. Having the correct chapter titles helps a bit, although I've yet to check whether it also displays on the car dash over Bluetooth. It's also a bit quirky with its parsing; I have a book whose parts (not technically chapters) I renamed as "{Title} : Part 1", "{Title} : Part 2" etc. and iOS has tried to be clever and removed the {Title} bit but left the colon. So all my tracks are displayed as ": Part 1", ": Part 2" etc. Nothing that can't be changed in ten minutes in iTunes but annoying nonetheless.
The lack of playlists is more serious. It's something I can probably learn to live with, given that the workaround (having most of my radio shows as Music and using the Grouping flag to separate them) was almost as annoying as the problem it solved, but it's still a surprising omission. Given that iTunes can use playlists to decide which audiobooks to sync, not having the actual playlists on the actual device is bizarre.
And I've just discovered that Siri can play audiobooks by asking her to "play audiobook {title}" which is kind of cool. I don't know if that's new or just something I missed before, but it will help immensely while driving as long as I can remember the title of the last thing I was listening to. 😉
FWIW the things I've found that come closest -- and it's a distant closeness -- to replicating playlists in the iBooks app are:
The Categories tab. This seems to be iBooks' term for Genres, because that's how my library is broken down when I have this tab selected. For instance I have Comedy, Documentary, Historical Fiction and Science Fiction visible , with relevant books (and in my case radio shows) listed below.
Collections, which are very broadly analogous to non-Smart playlists for a specific subset of functions. By creating a new Category with a name of your choosing and using the Select menu you can move audiobooks into any number of "subfolders". (Technically they're shortcuts rather than movements since the books still appear in the overall Audiobooks Collection too).
Sadly, neither of these break the titles down by chapter (or in my case, episode). They only list the actual title of the work, and clicking on it starts playing from where it left off and continues through the parts until completion unless you tap the "three lines" button to see the list of parts. So if like me you used to have Smart Playlists that were ordered by release date or addition date, so you could play a part of one audiobook followed immediately by a part of another, then I think we're SOL.
Still, at least the chapter names display now. So well done Apple! 😕