Please, isn't this an iOS 8 Music App thread? This confused the hell out of me before I realized you weren't even talking about the iOS music app.
Anyway, I like the new app, and the new way they handle Artist/Album hierarchy is much better (and pretty) though still not 100% what I'd like, it's close enough. EXCEPT it arbitrarily ignores my "sort as" field. A.C. Newman should be in the N's, the way the world has operated forever, not the A's. However, some artists DO sort properly with the Sort As field I've set up. I can't make heads or tails of why it works for some and not others. May try resyncing my whole library when I get a chance.
Also, in Artist view, for most artists it shows the collapsed albums (much easier to navigate) but some it shows them expanded (though - hallelujah - I can still touch the album "bar" and have it play JUST that album... iOS 8.3 didn't work like that did it?). Again, no rhyme or reason for which artists show this way. Seems independent of number of albums, whether they're sorted properly (see above) etc.