We're thinking similar route at this point - I can't think of a friendly way of having lyrics related to different albums (including different positions on different tracklists), with different releases of each album related to the main entry in Drupal. To be able to hand out input to more people (which is something we are thinking of) the UI needs to be fairly understandable. It could be done with some taxo terms and weighting, but it feels like it'd be pretty kludgy and I'm not going to write a module for it (plus php isn't my strong point in the web dev skillset).
If you know of some super friendly way to do that in Drupal I'd be happy to hear it.
So far this extension for expression engine looks like our best bet:
http://pixelandtonic.com/playa