In version 1.9, the iTunes playlist is collapsible. This means you can show and hide your iTunes playlists, so you can have your iTunes library loaded into Scratch Live, but still have enough space to see your Scratch Live crates.

If you open Scratch Live and can no longer see your iTunes playlists below the iTunes library icon:

Don't panic, they are still there! - simply click on the blue iTunes library icon to expand the iTunes library.

Click here:

 

Collapsed iTunes playlist

Which will then show your playlists like this:

 

Expanded iTunes playlist

In Scratch Live versions 1.9.1 and higher, the iTunes library is exapnded by default.