That's s*it.
Compilations: Born To Be Wild (Disc 1) 1-01 Born To Be Wild.m4a 1-02 Rocks.m4a 1-03 What's The Frequency, Kenneth_.m4a [etc...] 1-18 Inside.m4a 1-19 Walk On The Wild Side.m4a
Which is exactly what you say you want. All the tracks unstalled into a folder of the album name under "Compilations". It's the same with every compilation album.
Which begs the question, what the f*ck are you doing poking around in there? There's absolutely no need, and it's probable that fiddling around with the iTunes library is going to balls up the storage of files or at least (in Windows) causing problems finding files since the Windows concept of filing sucks - no filehandles.
Of course it's only really a problem to the sort of tool who buys humdreds of compilation albums. I which case complaining about sound quality is most amusing since compilations always have heavy dollops of compression applied to them.