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You can only delete/hide purchases via a Mac or PC using iTunes, but yeah I agree that option would be nice to do via the ATV.

There is Music Playlists, there’s a selection of Playlists under the Browse tab.
Under the Library tab there’s also a Playlists section which will include all playlists you’ve added to your library.
I’ve got the shared playlist my wife put together for our wedding in mine as well as a playlist one of my kids put together.

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You can create your own within the app by either selecting the three dots during playback or press and hold the trackpad over any title
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any chance of this changing at WWDC?

No. WWDC generally introduces the Fall software releases. Feature requests at this level would not be discussed. Best to file a feedback form so Apple can consider it.
 
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