BTW you can create folders of playlists. Between that and search, it makes it manageable enough for me.
If they can find a way to fix their content quality problem and licensing issues with the RIAA, they have a really bright future. They're the most innovative company in the space right now and I think it would be a damn shame if they were forced to close due to different recording companies constantly suing them and turning back on their settlement deals. Having to deal with EMI, Sony Warner MG, Universal and their ilk separately is part of the problem as well. The reason their iPhone app got pulled from the App Store[1] was because UMG filed a new copyright infringement lawsuit against them Jan 2010.
You have to understand they function quite similarly to how Youtube works and is obligated to follow the DMCA.
You can ofc save albums as a playlist on their own - and this is quite well supported, but personally, after the first 10 albums I'd saved there, I have never found it to be very useful.
Another upside to user uploaded content is that Grooveshark has a massive library of available songs. I have found the most obscure artists in different languages on Grooveshark. I listen to a lot of music and artists and there are very few musicians I haven't found on Grooveshark.
Grooveshark should make a major marketing push given the current jailbreak window.