Create automatically playlists for audio folders, with MP3 Recursive Playlist Generator
MP3 Recursive Playlist Generator is a free utility that will create an m3u audio playlist in a folder of your choice, and, if you want, into all of its subfolders recursively. The program will give you also the option to download album art and to select what audio formats you want included in your playlists.
MP3 Recursive Playlist Generator will create playlists inside the relevant folder, not in a separate folder you could define, nor replicating the folder structure of your music library.
Note that the program does not support non-latin characters or the creation of m3u8 playlists. Note also that playlists include only filenames (not full paths), therefore you can not copy or cut them all and move them to a different folder.
MP3 Recursive Playlist Generator is a good program, that (with minimal work) could become much more flexible and useful.