Hello.

As far as I understand we can allow guests to upload images to the gallery but not create albums? How is this or am I missing something?

Seems really strange to me that guests can only upload images but not be able to sort them into albums.

Albums have a relationship to a user or set of users. As guests are not a user, that relationship is a little complicated to say the least. However, for any changes in the product, feel free to submit a suggestion in the Suggestion forum 🙂