When trying to create smart playlists, I have been frustrated by the fact that many tracks and albums have multiple genres attached. I use MusicBrainz to organize my imports and typically a track/album will be tagged with multiple genres. I can put in a filter that states Album Genre is not Jazz, but if the album/track contains another genre, like “Smooth Jazz”, the is not seems to be ignored. If this feature is broken, it should be fixed. If it is working as intended (that is, since the album/track has other genres listed and therefore will pass your is not test), then what I would like is a condition called “exclude” which would mean having the attribute would exclude the album/track from the filter, regardless of other attributes that may have alternatively allowed it.
That said, it seems that if tracks on an album have different genres, they are all combined at the album level. The result is you cannot properly filter tracks for genre characteristics.