If you go to File in iTunes, one of your options is New Playlist Folder, and then you can add playlists to a playlist folder or even have playlist folders within playlist folders. I use these all the time, and nest them sensibly and use them to shuffle things together. Maybe this needs a screenshot:
Yeah, for the purposes of your poll, I responded "iTunes has folders?", even though, thanks to you, I now know iTunes has folders (and I use them, too!).
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My iTunes automatically organizes by artist-name folders, and then I have playlists within the program. Is this what you mean by playlist folders?
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If you go to File in iTunes, one of your options is New Playlist Folder, and then you can add playlists to a playlist folder or even have playlist folders within playlist folders. I use these all the time, and nest them sensibly and use them to shuffle things together. Maybe this needs a screenshot:
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