Blame iTunes.
It's really not something that anything can be done about. When you view the playlist, you view the actual playlist. You see the filenames of every song in it. Since iTunes gave them all weird names, that's what you see.
The easiest solution is to actually organize and store your music by filetree either copying over by hand or any other method that doesn't rename the files to random letters. You can still use tagcache, and your playlists will actually be human readable.