Even though this is not a flaw, I understand it can be confusing.
About your complaint of tracks sorted alphabetically, that's because you are selecting your album from "cover flow" screen (the screen where you can flip through your album library directly within the music player screen). Within this screen, your basically just browsing all your songs grouped by albums in alphabetical order, and within each album, every track also is listed in alphabetical order.
If you instead, go to the "list mode" screen and then place the bottom selector to show your library by ALBUM, you will get a list of all the albums in your library. Choose any album from the list and tracks will be played in the order they are meant to be played as their original order by track number (this is because you're now making your selection under Album criteria (as opposed to alphabetical criteria).
As per how to show all of your music library in "cover flow" mode, you need to go to "list" screen first, then place the bottom selector to display your library by SONGS, so all of your songs will be there. You then press the "menu" botton and select "play all songs", and you will be taken to cover flow screen again, with every single song in your music library. Just hit the pause button to stop the music playing and flip through the album covers of your library. Keep in mind, both songs and albums will be sorted alphabetically.
Do I think this is intuitive? NO it's not. But hey, as I said, it can get confusing at first, but once you get it, it makes SENSE ('sense', get it?
)