Yes, you can browse by artist, genre, years, playlist, music folders, etc.
If you want to test the whole system before buying the hardware, you could install the Slim Server software on your computer and then install the SoftSqueeze client as well. Softsqueeze is a software version of the Squeezebox device. Both the server software and Softsqueeze are available for free.
http://softsqueeze.sourceforge.net/
You can even synchronize the Softsqueeze client with a Squeezebox.
Actually, it looks like Softsqueeze2 comes with the Slim Server now. It looks like you can access it via the web interface to the Slim Server.