I asked a similar question both here and only Twitter. My Twitter question got the attention of someone at Apple. Today, they called me(!!) and we went through what is going on. I've sent them a number of screenshots and attempted to explain why stations are not the same as playlists. The guy with whom I spoke was not aware of the playlist functionality in iTunes. (Seriously?) I'm told they're (now) aware of the situation and that the issue has been forwarded to engineers for comment.
I'll try to update this, my own thread, and the other threads asking the same question with anything I find out.
FYI, I tried to work around it doing the music thing and stations. Nothing works right. My next step was to (manually) turn each playlist into an audiobook and listen to them in iBooks. Not the best solution, but I think it's the only way to work around it without some intervention from Apple.
In short: this blows.