A playlist can be viewed as album covers for EVERY SONG by changing the list style in the pulldown menu at the top of the list. This will show one album cover per song. Playlists can't easily be grouped into full albums so that you only see one cover per album. It *can* be done with a View that includes playlists. It's kind of a workaround and lacks some of the features and functionality that playlists have.
Brian.