Yes, that's correct. The access by Artist give you access to that Artist's albums, but not collectively the tracks on those albums.
Not sure about pre 8.0. But do know that a 10yr old iPod will allow you to shuffle within artist, as will the iOS music player on an iPhone. But hey, those are $600 devices with 24/7 phone support, how can they be compared to a $100,000 car with no support for the infotainment features at all! Oh yeah, my $50,000 2011 Mercedes also supported that feature from internal storage, an external iPod, or an iPhone. But it was just an old crude diesel vehicle, not a state of the art EV!