I'm redesigning iTunes and in this program "create playlist" action is hidden. You have to right click on "Music Playlists" to get a dialog of available options like "New playlist", "New Smart Playlist", "New Playlist Folder". Hiding an essential user action is a bad UX so I decided to make visible button for that. Creating one button would make interface less cluttered but there will be more clicks to finish the action.
Which solution would have better usability?
Also "New Smart Playlist" has an additional dialog with options to create it and in original iTunes UI it has three dots indicating pop up dialog like "New Smart Playlist..."
Can I design a button without those three dots or would it make UX worse?
Here is my first option:
Here is my second option: