I propose a concept to truly integrate Local Files into Spotify. If I had a rare EP, or a CD of an album that isn't on Spotify, those songs? Completely separate from the entirety of that artist's discography. It makes listening feel incomplete, especially when I want to shuffle an artist's entire career.
I think it would be really cool if Spotify could look at the metadata attached to our Local Files which're the music files that we have on our computer. They could use this information to add those albums to the page of the artist who made them. For example if I have a copy of an album that I downloaded from my band and that album is not available on Spotify I think it should show up on the list of albums that the band has made. It would be clear that it is one of my Local Files because it would say "Local Files" instead of "Album" or "Single". This way I can see all of the music that I have from an artist even if some of it is not available, on Spotify. Spotify could make this happen by scanning the MP3 metadata of our Local Files and adding those albums to the Artist Page. This would let users shuffle an artist and have Spotify play both the tracks that are streamed and the tracks that are on their computer without doing anything. They would not have to make a playlist, with the artists songs and the local files. This way Spotify can play all the tracks from the artist.
So I think Spotify should have a system that looks at the information about a song and finds the name of the artist. Then it should put the album on that artists page. Sometimes Spotify might get the artist wrong. For example if a small local band has the name as a really famous artist Spotify might get confused. In that case the user should be able to move the bands album to the right page themselves. This way the bands album will be on the correct artist page, which is the page for that local band, not the famous artist. The user should have control over this so they can make sure the bands album is in the right place, on Spotify. Since the files stay on the user's device and aren't uploaded to your servers, it avoids any licensing issues while giving the user a much more complete and organized view of their music collection.