So I tried shaking things up to get this working. I bit the bullet and subscribed for iTunes match and canceled the renewal (I don’t spend $2 /month on music purchases, and cheaper for me to just buy what I want).
Main point; HomePod plays play lists now.
However, contrary to how many here feel its required, that not true according to apple unless someone can show an apple.com article stating Apple Music or iTunes Match is required to play playlists.
Again, my HomePod was able to play “All music” and any selected song with Siri, just not playlist.
Before you even think of getting iTunes match please read. What a DISASTER!
After you subscribe, you need to enable iCloud Music Library on your iPhone where the vast majority of people maintain their playlists
https://support.apple.com/en-us/HT204926
This section is incorrect:
2. If you already have music on your device, you're asked if you want to keep the music that's on your device.
If you choose Keep Music*, the music from your device adds to your iCloud Music Library.
If you choose Delete & Replace, the music on your device is replaced with the content from your iCloud Music Library.
The only option you have is to delete all music & all playlists from your iphone… a daunting thought for many I’m sure.
My playlists are huge, but limited number of them, so I again bit the bullet and went with the delete planning to recreated my playlists.
Then it gets worse, all your iTunes purchases are not registered in your iCloud Library music. When I had a missing song, I had to go back to iTunes, search for the song, make like I’m paying for it again, sign in, and then you get the prompt “You already purchased this song, re-download?”
It wasn’t a few songs, it was most of them.
After all that ****, HomePod can finally pay playlists.
I just got the email back from apple support from three days ago and the engineering department has an update. They are scheduled to call me back in a few and I’ll update.
For me, I am not paying $2 /month let alone $9 (you really couldn’t just buy all the music you want for $9 a month? They are still playing the same songs on popular music radio from when I left my wife 18 months ago lol; I need to get more into music maybe =) for HomePod to be able only add the ability to play playlists.