It is too hard to read the playlist over a dimmed song list. I don't think blur or any other effect should be used when showing settings and playlists, the song list should be entirely replaced. And the active playlist should be highlighted blue or gray like the current song and there should only be a single delete button in the bottom controls along with the new playlist button and edit playlist button. This would free up the entire line for just the playlist for quick selections and keep all the less used management controls out of the way at the bottom of the screen. A horizontal swipe on the playlist should invoke the edit action but the edit button is down at the bottom for those who don't know about the swipe.

If you'd rather use an icon to mark the current playlist then use something other than the slider knob. I just think the slider knob, or any other icon, looks like a button that should do something when tapped and highlighting the background makes more sense.

And the new close button is much nicer and doesn't draw my eye away from the rest of the UI.

Edit: And UI elements should remain the same size. Meaning the playlist elements should be the same size as the song elements. If you look at the new screenshot the playlist elements have more vertical space than the song elements under them. This should be the case even if you can't see the song elements below the settings and playlists. The UI doesn't flow properly if they change sizes without a good reason.