A great idea; the thing about the Album feature is nobody will know you have an Album unless they view your profile. A separate browsable gallery would be great.
One thing we'd like (and it's the reason we use a third party editor called CuteEditor) is on-the-fly- resizing of jpg's.
Originally, we'd set an upload size of about 200k, which would require members to re-size their upload pics. Members where trying to upload directly from their digital cameras (when we had a larger allowed file-size they COULD do it, but the uploads were thousands of pixels wide and requireds horizontal scrolling (yuck).
I purchase CuteEditor, and it will take a 5 M upload, re-size it (to say, 800 pixels wide) and everything was fine...members didn't have to re-size and viewers didn't have to scroll.
Then, the 'lightbox' version of YAF came; we STILL use CuteEdtor though, because although lightbox thumbnails prevent the post from being wide, the 5 meg uploads from digicams still take up space needlessly (when a 300K 800 pixel shot is fine).
So, re-sizing would be a plus!