I divide my physical albums/CDs and my digital files into genres, although some of these are idiosyncratic genres that are meaningful to me.
I may have a single artist filed in four or five different sections, depending on the nature of the music.
I might also file an album based on the style of the money cut. For example, if an otherwise ho-hum jazz album has a killer Latin cut, I may file it in the Latin section.
As far as jazz, I have a straight-ahead jazz section. However, lots of jazz, to varying degrees, is also filed in Now Sound, Latin, Brasilian, Exotica, Space-Age Bachelor Pad, and even a few in the Outer Space and Astrology sections. For example, CTI albums go in the Now Sound section.
This approach works for me.