I'm not sure that I quite understand what you want to do. iTunes names its folders according to the name of the artist for the album. If the album has more than one artist, iTunes puts the album in a folder called "Compilations" named after the album title. If you change the titles for the folders outside of iTunes, iTunes will not be able to find the tracks. You would have to change each group of tracks manually to point to the correct location, and if you ever rashly hit "library-Organize Library," they're all going to change back.
It sounds as if what you need to do is to change the names of artists to match the names of the playlists. Doug does have a called "This Tag - That Tag" which would allow you to swap one entry in metadata for another, such as the artist tag for the album tag, though it doesn't let you swap for a playlist name. If you were to select all the tracks that you want to have in one folder and change the artist name to correspond to the playlist name, your folders would be the way you want. though you lose the artist name.
Alternatively, if you were to copy the files to the computer to a folder that has the name you want, then add them to iTunes (first making sure that the preferences options for "Keep iTunes Media folder organised" and "Copy files to iTunes Media folder when adding to library" are turned off), you would get the result you want.