Since yesterday's update Spotify has become usable again for me and I've been able to sync my songs too but there's one problem. The app feels very sluggish and laggy. This is something the dev team needs to work on.
Also another thing that caught my eye. The green downloaded icon doesn't appear on all songs, eventhough they do play when in offline mode. This tells me the songs are downloaded it's just the icon that doesn't show up.