Move iTunes folder outside Music folder
Yes. Quit iTunes. Move the iTunes folder to the desired location. Then, make a symbolic link to the moved iTunes folder, drag that symbolic link to the Music folder, rename the link to be exactly "iTunes" and you are done.

An alias won't work. It has to be a Symbolic Link. 

I made my symbolic link using an Automator Service. Automator is not set up to make Symbolic Links out of the box, so you have to get something third-party to enable it. Here is a link to a good article on how to get the piece you need and also how to make and use the Automator Service. Here is the link:

http://www.makeuseof.com/tag/automator-create-symbolic-links-dropbox-mac/

There are other ways to make a Symbolic Link but you only need one, so here you go.

You don't have to change anything at all in iTunes. That's the beauty of this method. The symbolic link satisfies iTunes' need to have an iTunes folder in the Music folder, while pointing to the real iTunes folder somewhere else. Just be sure you name your Symbolic Link "iTunes" after you move it (don't try to rename it before you move it-- you will be trying to name it the same thing as the real iTunes folder).

You can always throw away the Symbolic Link and put the iTunes folder back in the Music folder if you'd like, so you really have nothing to lose. Try it!