Why can't I create FOLDERS under my iPod name in the DEVICES heading?

Question

Note: I have my iTunes set to "MANUALLY MANAGE MUSIC".
I can create Folders, subfolders and playlists under the PLAYLISTS heading.
Under my iPod name in the DEVICES heading, iTunes only lets me create a PlayList. No Folders.
Questions:
Do I need to AUTO sync to get the folder heirarchy and songs created under the PLAYLISTS heading onto the iPod?
How do I create a Folder under my iPod name in the DEVICES heading? This appears to be a bug and/or another iTunes limitation. I tried it and whenever a new folder is seleted, the folder appears under the PLAYLISTS.

Answer 1

*Why are you creating playlists for albums and artists?*
Why is that relevant? This is an Apple product which, historically, has allowed its users to file information any way they saw fit! Why suddenly impose arbitrary restrictions on how I organize my own data?
+The earlier version of iTunes DID allow you to create folders in the iPod+
*Only when autosycning*
*You can be frustrated all you want but the feature has not been removed.*
Yes the feature HAS BEEN removed. I currently am holding a prior generation nano in my hand which, in iTunes 6, allows me to MANUALLY create folders in it and drag playlists to the folders. I can nest folders and create any hierarchy I want. Since I am doing it MANUALLY, I can use the same ipod on several computers and collect selected audio files from each of those computers. The new version of iPod/iTunes simply has REMOVED this feaure and it is now only available if you autosynch. Like I said, I currently have free use of folders on an older gen ipod in MANUAL mode.
The software is too concerned with whether you are pirating copyrighted material and does not at all take into account LEGAL use of the iPod! As a matter of fact, I use the iPod to store audio tracks of live presentations and need an easy way to archive these on a single ipod from several computers. The most efficiient way to do this is to MANUALLY transfer the files from each computer to the iPod, and put them in their corresponding folders on the iPod. I have been doing this for over a year on the previous generation nano and iTunes 6 with no sweat. But new iPod required 7.5 iTunes and I can no longer create folders on the iPod in manual mode. This requires a long linear stream of playlists that cannot be organized into category, computer of origin, etc. As such, I can no longeruse the new iPod for my very simple application of archiving/playing non-copyrighted audio files which have no prior id3 info.
See?
Phil F.