Yes funnily enough it did go away. I bought my classic back in September and I've always updated it to the newest firmware since, I'm not sure which update did it, but one day it stopped the multiple playlist thing.
Investing in the June firmware update for the iPod touch seems a good idea, let's hope that the people at Apple noticed the glitch. Though I'm having the problem on my touch that sometimes it assigns wrong album art to albums in the album preview (not when the song actually plays). I'm sure it'll all get fixed with the new firmware update though.
offhand though nothing ever goes away unless the software is changed, so I doubt it'll go away without a firmware update.