Can I summarize this thread so far as follows?
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Roon is aware that the user experience for Tidal/Qobuz and specifically playlist users, is not what it should be. They are working on it but can not share any details about timing/roadmap.
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A lot of it is caused by the library/non-library architecture of the database. This issue has been on the table for five years or longer. So there is no saying when it could/would be solved in a fundamental way.
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In the meantime, it seems there might be at least two improvements that would benefit Tidal/Qobuz/playlist users:
3.1 Some kind of possibility to replace non-library tracks by library tracks in playlists (not automatically though, but optional - since not everybody wants her tracks in playlists to be library tracks). See: Solve the library/non-library conundrum and all the complexities it creates for tagging, focus, playlists etc - #55 by Andrew_Webb & Solve the library/non-library conundrum and all the complexities it creates for tagging, focus, playlists etc - #6 by Francois_De_Heel.
3.2 When you add a track (from Radio, queue, search…) to a playlist, that you have the option of making that track a library track and putting the library version in the playlist. Now it takes: (1) add the track to your library, (2) go to your library, find the track, add it to a playlist. On top of that, you can only do that after the track finishes playing.
These two things will not solve everything for everyone (like for instance two-way sync or the 10K Tidal limit). But it will help Tidal/Qobuz/playlist users a lot without diminishing or even changing possibilities for others. And it would create a lot of happy Tidal/Qobuz/playlist users because, after that, they could fully enjoy the many possibilities Roon offers (tagging, focus, hearts, etc).
My question for the Roon team (@brian, @dylan). Is there any chance that we will see this improved functionality for Tidal/Qobuz/playlist users anytime soon? Are you (planning on) actively working on this? Or do you choose not to, because you prefer to wait for a thoroughly rethought structure where the library/non-library silos are abandoned altogether?