You have it right about iTunes.
I don't just have albums in my library. I have b-sides from singles, remixes, EPs, bootlegs, and a bunch of other various recordings. From various different artists that I like. I use the album view because in my mind, I know where certain versions of songs originated from, I know what year they were recorded, among other things, but I can't really tell you the name of the album, I just know the artwork.
And I organize them with smart playlists, and when I'm at a computer, I don't even use the main iTunes "Music" panel because it's a complete nightmare to look through with everything in there. So all my playlists are setup in that album view so it's like as if I were looking at that main "Music" page.
Some people just throw all this extra stuff in one extra album that they just add and add to. I don't do that because I feel like cover art, and having them named as they are supposed to, is just enough to keep digital music collecting "tangible" to me.
The list view is good when you're looking at an album itself and want to pick out something to play. I don't particularly like the way it is in Marvis because it puts the list in a separate thing I have to scroll through to find something.
If I understand you correctly basically the issue then is that you identify your music by album cover and you find the picture of album covers in playlists too small?
Perhaps Aditya could put something into the settings to have a larger album cover? Although I think that should only be an option. I would imagine most people know the names of their songs and albums and few would only identify them by album cover art. It might look a bit peculiar on a small iDevice screen though, potentially you could have lots of the same covers all in a row.
I suppose it's a feature you could put in a request for.