Usually, the tar has a relative path, which you can see in the t output. It will make the leading directory if any. So, run tar in the target directory where you want that subtree:
Unix tar does not have a built-in (de)compression.
The advantage is that the newest (de)compression methods can be used without updating the tar binary.
The disadvantage is that you must get used to complex shell code.
Example:
bunzip2 -c whatever.tar.bz2 | ( cd somewhere && tar xvf - )