Same here, been discussing this for a while. There seems to be no solution other than wait for an update.
Whats puzzling is that the artist images displayed fine on iOS7 GM (tested on an iPhone 5)
But I have never been able to get artist images to work on an iPhone 5S 7.0 and 7.0.1 and any iPhone running iOS7 downloaded OTA or updated through iTunes.
So the last time I saw this feature working was in the GM released to developers. Either something has changed at Apple such that they are not allowing the artist profile pictures to be downloaded by iOS7 devices any more or the release version differs slightly from the GM introducing this bug.
I am going to bet on that its a bug in the release version software (GM is usually but not always what gets released) as I have artist profile images still working (including if a new artist's music is added) on an iPhone 5 running GM.
So for now, for me, using the artist view in iOS 7.0.1 is a rather ugly experience even though every album I have has correct album art loaded which should be used in artist view if the artist profile image is not available, unfortunately, I can just see a lot of grey squares with artist and album names just like the image in the OP.