You are bored to click on add files to the playlist and you want something more dynamic or more evovled than the album list directory structure function/ This component will satisfy you. With one click, you will be able to do all you want with your files according to their physical structure.
It is as in the explorer, click to expand and do what you selected to do with your clicks and shortcuts, right clicking will open this contextual which is quite clear. You are now ready to manage your playlists with few clicks.
Personally, I put it in the sidebar on the left while my other components are above my playlist, I use Create toggle area to left of sidebar in the sidebar tab (Display, UI columns) and I hide or open it if I have to change my playlist with a click on the left of my screen, it's fast and useful to change my playlists.