Long suites of thematically consistent music of course predates recorded music, so I don't think you can chalk it up entirely to the recording medium.

it really depends on how you like to listen to music. an album is often like a snapshot of the artist's sound at a certain point in time. if you listen to death cab for cutie's first and last album back-to-back, you might not realize it's the same band. if what you want out of a listening session is to hear a bunch of vaguely similar sounds in no particular order, an album doesn't do much for you. if you're in the mood for a more specific sound, a good album can be a lot better than eight solid tracks.