Update 2: I found the root cause of the issues I've been having, and reported it properly here: http://community.spotify.com/t5/Help-Desktop-Linux-Mac-and/Bug-Report-Your-Music-doesn-t-sync-correctly-from-desktop-client/td-p/740789
Update: I have dug further and found primarly one specific bug (#1 below) that's behind most of the issues with Your Music. So here's a new a revised request list of issues/fixes:
Adding songs/albums to Your Music does not correctly update Songs , Albums , and Artists sections. The intended purpose behind Your Music seems to be that adding a single song to Your Music makes it show in Songs , it's album showing in Albums , and it's artist showing in Artists . That is currently not true 90-95% of the time.
It is not possible to add songs/albums from local files that are not in Spotify's database, like this one for example: Time's End: Majora's Mask Remixed by Theophany
Replace the + button next to each song with the old Star icon and add a "Add to My Music" contextual menu item for songs. The "Save" button on albums can stay as it's quite useful. A music library is not the same thing as your few specific favorite songs.
To get technical about #1: There seems to be two internal lists that make up Your Music, one for songs, and one for albums. The Artists section is derived from the albums list, as saving an Album always adds the artist too. The idea would be that these two lists are always kept in sync when a song/album is added to your library, but this currently fails. Hence adding an album doesn't always add it's songs to the Songs section, and adding a song rarely adds it's album and artist to the Albums and Artists sections.
In my testing, saving in album adds all songs from the album to Songs about 90% of the time. While adding a song adds the album and artist to the Albums and Artists sections about 2% of time when clicking on the + button next to songs. If you drag-n-drop the song(s) onto the Songs section, it never updates the Albums/Artists sections.
Fixing the above bullet points will in my opinion solve 95% of the issues with Your Music. As it ensures Your Music is a singular storage of your actual music, including songs/albums from local files that Spotify aren't aware of.
Personally I had until now simply created playlists from albums and playlist folders to try to build a "Library".
Origianl idea submission:
This is a summery of my suggestions from this post: Thoughts/c omplaints about new Your Music feature and Stars (and Spotify overall)
Please read or at least skim through the above linked post to get an idea of why Your Music is a catastrophe and needs fixing.
Without further ado, here's my list of suggestions to fix it:
Revert the Star feature to working just like it did, complete with the star next to each song, everywhere.
Replace Songs, Albums, and Artists lists with a single list/item called "Library" or something similar. Within the Library view there are "Songs", "Albums", and "Artists" tabs as alternative ways to view your "Library".
Add a contextual/right-click menu item called "Add to my Library" to all songs, and as a button for Albums.
Adding a song to the Library, will make it show under the Songs view, and it's album and artist show under their respective views too within the Library.
All local files should be part of the Library.
And potentially, enable making the whole Library available offline.
Bonus Features:
Not vital to fixing the mess that is Your Music, but they will add to the above suggestions and make Spotify overall better and more consisten to use.
Add a artist/album browser/list/sidebar/something that can be shown/hidden within each playlist. Potentially do it in a similar way to the above mentioned Library view. Potentially do something similar to what iTunes does (example).
Add back the Album Cover view for playlists, which was removed about a year ago.
Add a "Show Duplicates" feature for playlists, showing all non-unique songs. Preferably basing song uniqness on "[ARTIST_NAME]:[SONG_NAME]".
Show a OK/Cancel warning dialog when attempting to add a song that's already in the target playlist. Include a "don't show this warning again checkbox" to make the masses happy.
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