That works fine until you have a few thousand photos to organize.
But when you have several if not dozen thousand of photos, it gets really messy.
The ability to create sub-folders/album would help tremendously to organize everything.
Here's a simple example.
I known 10 people, for each one's birthday I take an average of 100 photos, in year its 1000 photos, in the next 10 years will be 10. 000 photos, and that's just from birthday parties alone, doesn't include hundreds of other activities I could save with photos.
How many albums should I create? one album for each birthday party? that's 100 albums alone in 10 years, its crazy, I could instead simply make a folder called "Friend 1","Friend 2","Friend 3" and in each one "2008 birthday party"/"random photos", etc. it would be wayyyy more organized and less messy-looking.
In case it wasn't clear, I love taking photos every day of every random stuff I come by, my PC its actually exploding and I can't afford buying more external hard drives for all the photos/video I make every week.