Foobar is a million times better than iTunes. It’s more powerful and versatile. Foobar will also handle every audio format you throw at it, most importantly FLAC, something iTunes and Apple still refuse to incorporate, and that is quite possibly the biggest reason not to use iTunes. ALAC being broken in Traktor 2.7.0+ is a pretty big example of why proprietary file formats are a really big hassle.
The Discogs auto-tagger component from Foobar is capable of automatically tagging files with complete Discogs data. This means record label, catalog number, and other release data gets automatically added. It’s also been really improved with updates lately, which fix a lot of the previous quirks it had.
With the right theme, Foobar can also be a pretty decent looking player as well. Different components can be added to increase versatility. Foobar’s smart playlists can do anything Apple’s can do, if not more since Foobar is capable of handling metadata iTunes can’t.
Foobar also automatically reads any changes to a file instantly. If I edit a track in Traktor, such as rating it or adding a comment, perhaps adjusting the genre, Foobar instantly sees it. iTunes still doesn’t do this.
On Windows PCs, iTunes is a pretty big resource hog, and was nearly unusable for large libraries. Thankfully, the new version of iTunes has seen a very decent increase in performance and this isn’t the case any more.
Foobar isn’t perfect though. It’s pretty confusing to set up and configure for beginning users. Like iTunes, it has some quirks that can be slightly irritating.
Anyway, as for file structure, I have a Music folder which has folders for every letter of the alphabet, and then artist folders inside those, with everything in album folders. I don’t let Traktor “deal” with it, as one of Traktor’s issues is that it won’t put albums in proper track order if the tags aren’t right.
For example, if you buy/download music from Bandcamp, you’ll see that the music tags are similar to this:
Artist Name - 01 - Track Title
This is fine if the album is one artist. If it’s a various artists compilation though, it will display in Traktor in the alphabetical order of the file folder. This means tracks will be completely out of order.
I use MP3Tag to rename all the files to:
01 - Artist Name - Track Title - Album Title
That is how I organize my music collection.
If you choose to organize your files manually, I recommend coming up with an absolutely foolproof method and sticking with it. It’s very tedious work if you decide you don’t like your organization methods and have to redo everything.