While Genius playlist creation is listed as a new feature in the release notes of the iPhone 2.1 Software Update, iLounge has confirmed that the feature will not appear unless the user performs a sync following installation of the 2.1 software. First seen on the new iPod touch, the Genius playlist creation button is supposed to sit below the audio scrub bar on the Now Playing screen beside buttons for toggling shuffle and looped playback on and off.…