I guess I really want to know if anyone else has abused the album tag (and therefore created much smaller "albums"), and whether it's caused them any problems.
If by “[abuse] the album tag” you mean tagging each work as an album rather than each CD as an album, I do this.
Rationale: So what if (say) two concertos came on the same CD? Why do I care? For example, I have a CD of Stephen Kovacevich playing both Schumann's and Grieg's piano concertos, yet I don't feel a great need, after listening to one, to listen to the other. What, then, do I gain, by keeping them together?
In all, I'm very, very happy with the result of making each work its own “album”. The hierarchy looks roughly like this:
Dvořák, Antonín
12 Silhouettes [Poroshina]
A Hero's Song [JPO: Kuchar]
Album Leaf B. 158 [Poroshina]
American Suite [Poroshina]
American Suite [RuPO: Yablonsky]
.. and so on. Instead of:
Dvořák, Antonín
Solo Piano Works Vol. 1 [Poroshina]
Theme and Variations: Theme
Theme and Variations: Variation 1
...
Polka for piano B. 3
12 Silhouettes: 1. Allegro fuoco
12 Silhouettes: 2. Andantino
...
Solo Piano Works Vol. 2 [Poroshina]
Two Furiants: No. 1
Two Furiants: No. 2
Eight Waltzes: No 1
...
Four Ecologues: No. 1
...
Tone Poems [JPO: Kuchar]
A Hero's Song
The Wood Dove
...
To me, the second gets very unwieldy. If I'm doing a search, it's less of a problem, but if I'm scanning my album list, I can't just see, at a glance, what's available. In the first scheme, “12 Silhouettes” is just one entry (with 12 tracks that need not be expanded), whereas in the second scheme, you need to see all 12 entries if you're going to see anything, unless you just happen to remember that the 12 Silhouettes are in "Piano Works Vol. 1".
The hardest part was convincing myself that I didn't need to know that two works came from the same album. But since the switch, I have never needed that information. Worse comes to worst I still have the CDs packed away somewhere.