If you go to "view options" or enter apple-J, you will get a menu of which columns you would like to see on the iTunes music window. You can uncheck album artist and then check album, and I think you will get the result you're looking for.
Additionally, any new playlists you create will take on the same set of column views that the music library has.
I typically have my iTunes library columns set for name, time, artist, album, plays, last played and kind, but that's just works best for me.
Looking closer, I think I understand what you're trying to do. (Maybe.)
I'd try telling iTunes to first sort the library using the artists column view, then click on the album view and see if that keeps the artists together with their album titles.
I'll have to get to my home library and fiddle around with it and see what happens. May be different for me because I keep my albums arranged as separate playlists -- just about the only way I can keep 15,000 songs organized. It's only the library itself that would be affected if I experiment with changing the way things sort out.