It seems like a no-brainer but actually no.

Quick test would be for example if there are:

• at the beginning of the music library a lot of "no artist name" "no album name" entries, so the foldername isn't used at all.
• a lot of artist with their own entry with just one album and one song because the actual albumartist collaborated on one song with them and the mp3 resides in the same folder but they got split in the library.
• if the player doesn't show music which isn't part of Playlist.

So my conclusion is their are even 3 types and corresponding mangement:

• Folder based requires file management
• Meta data based requires tag management
• Playlist based requires Playlist management

Often players make combinations also I guess.