It obviously never occurred to me to look, so I'm wondering what led you to do a "Show Package Contents" on Music Library.musiclibrary? Is there some sort of clue which, even knowing, I still haven't recognized?
The Library file that used to be an index to the contents of the Library but outside the library has disappeared along with several ancillary folders that were associated with iTunes. So I right clicked on Music Library.musiclibrary and sure enough "Show Package contents" appeared on the context menu.
I'm disappointed in myself for not having been that intuitive!
FURTHER TESTING: I first zipped the iTunes Library and any other folders in ~/Music except Music, in case I needed to recover them, then deleted the originals. All of my tunes, album covers, playlists, etc still show up in Music when the only places they could be physically located are in ~/Music/Music Library.musiclibrary and Apple's music library in iCloud.
That relates back to my most recent post in
Mysterious images in Music. (I don't use iCloud.)