Oli and Oak: You're right.
"Mean Streets" is best at matching the songs to the mood of the scenes. For example:

--Charlie puts on the monogrammed shirt his mother gave him and looks at himself, adoringly, in the mirror. The song: "I Love You So," by the Chantels.
--Charlie, Jimmy and Johnny drive to Joey Catucci's poolroom. They're out of their neighborhood, almost tentative. The song: "Florence," by the Paragons, quintessential NY doo-wop.
--Tony's bar closed for party for Jerry, Vietnam returnee. Charlie's drunk, everyone's acting silly. The song: "Rubber Biscuit" by the Chips, very silly song.