On the dedicated "select a playlist" page with the squares, it even freaking re-organizes the squares every time you view it! Imagine if your desktop icons re-organized themselves in some arbitrary way every time you needed to open a program, and you get the utter destruction of muscle memory that can make up for the gaps in efficient design.
Or are you saying the bar is: "as long as there's something worse"
It could be that, in most cases, we only think of the options as ones that we've been introduced to.
We're way too busy with daily life to really think in-depth about everything in hypothetical possibilities, such as "here's a way in which a music app that doesn't exist could do it better." Instead, (unless we're very passionate about music), we tend to only think about the options that have been presented to us.
These days it's so hard to organise or browse your own music collection.