The addition of Discover Weekly really confused me. Shouldn't the features that create a radio station from an artist or a playlist fill this need already? Why is it only updated weekly? I haven't tried other services much but it feels like Spotify isn't doing as much as they can with recommendations.
I wonder if there's any data on how common this is. I listen to large shared playlists or the radio feature the vast majority of the time to try to find new music.
Either way, radio-from-artist or radio-from-song can't utilize your listening history. It's quite possible you listen to an artist for different reasons than the reasons most people listen to that artist - in that case, you will get recommendations based on the majority's reasons.
You would expect personalized recommendations to have potential to do much better, and I'd argue that's exactly what we see with DW.
There's an interesting presentation of how it's created on SlideShare
http://www.slideshare.net/MrChrisJohnson/from-idea-to-execut...