That feature is in 1.3.0.1 as well, however, the functionality I'm looking for is (a) limited to a single category (and its subcategories), and (b) appears in the store alongside other subcategories on its main category page.
Like this:
Main Store Page
- Category 1
- Category 2
- (Subcategory) View Products by Category (contains subcategories)
- (Subcategory) View Products by Title
Clicking "View Products by Title" would reveal the alphabetical list of products only under Category 2, but which are also listed in the subcategories of the "View Products by Category" section