iTunesFS allows you to mount the iTunes database and all your local iPods as a file system, using the excellent MacFUSE. Albums, Artists and all Playlists are exposed as directories, with their respective entries, allowing for painless backups.
A friend of mine wanted to copy some files from an iTunes™ playlist to an external drive, but iTunes™ wouldn't allow her to simply let these files being dragged to the intended destination folder in Finder™. She asked me what she could do about it.
I thought about it for a minute, knowing that it wouldn't work with iTunes™ alone - but I realized that it's probably simple to code a solution. Even better than having a separate standalone application for it, I figured I could write a new Fuse file system - making use of the excellent MacFUSE project!
Enter iTunesFS, a FUSEObjC based file system for your Mac, which makes all your iTunes™ playlists available as folders in Finder™! And - not only that - as you can see in the screenshot below, version 1.1 adds support for iPod™s in the very same manner!
Now you can easily copy content of your iTunes™ library and your iPod™s in Finder™ or The Terminal - ideal for, err, backing up specific content. Whatever.