After upgrading to iOS 5 and using it for a few days here are my opinions on how these two features should work.
First I will cover how saving a photo from Safari or an email and moving to an album should work.
I google "pics of 2011 camaro", find the picture I want, and save it to photos app. I close safari and open photos and go to albums and open saved photos. I then tap the edit button, select the picture I just downloaded and then tap "add to". I then tap "new album" and title the album "New Camaro" This is assuming I don't already have an album titled "New Camaro", if I did I would tap the add to existing album button and then select the album I wanted to add it to. And most importantly, after saving the picture to either a new or existing album it DOES NOT stay in the saved photos album.
Also, we should be able to freely move any pictures in any album, including albums and photos synced from iTunes to any other album and the moved photos appear in ONLY the destination album.
The one perfectly executed new functionality is the ability to re-arrange the albums. Basically, the saving and moving functionality should work exactly like the Photoalbums+ tweak in Cydia with the re-arrange functionality added.
Now I will cover Photostream.
Say I take a photo with a camera or save a photo from browser or email as described above and it goes to saved photos. All photos that go into saved photos or camera roll SHOULD NOT automatically go to Photostream. When a photo is taken or saved, to add it to Photostream, you should have to open the photos app, and fromsaved photos or any folder, you should have to tap edit and select what photo(s) you want and have a "Photostream" button in the "add to" menu. The photos would stay in whatever album you selected it from. The photos are simply copied to the Photostream tab. Once the Photostream photos are transferred to your home computer and/or other idevices you should be able to freely delete them from the Photostream tab on the original device but the photos stay on the other devices they are transferred to. Also, when photos appear in Photostream transferred from other devices, they should not automatically appear in saved photos. You should have to, when in the Photostream have to tap the edit button, select photo(s), then click save to saved photos or a new or existing album.
I believe that covers it. Apple did slightly improve the photos app with the ability to create albums on device and the ability to re-arrange them. But they really dropped the ball by leaving photos in saved photos when saved to another album, not being able to move photos to albums synced from iTunes...photos should be able to moved to any album whether synced from iTunes or created on device.
As I said above, they should have just copied the functionality of Photoalbums+ and added the re-arranging of albums and Photostream that works in the manner described above.
Thoughts, comments, or suggestions about what I've said?