Yes, this is all Joomla, but...
You have front-end upload and management and users not caring what you are working with. They are customized with FB and albums (see latest posts here - all about FB), and suddenly categories... Anyway... This is just an idea...
Another idea is removing folder management from the back-end at all - just upload pictures in a category/album directly, folder will be auto-created, it could be a number inside 'images/phocagallery'. I have other tools for file/folder management.
Recently I tried Multiple Add, and to my surprise I had to select images and to choose category (which I had to create first) after uploading them in the correct folder - this is too much additional job IMHO.
But still using this great component
