You can now delete an album. The album has to be empty first. Use the Manage Album Images button in the top right of each album to remove individual images. Then the Delete this Album button will appear if you're viewing an album.

I've also split up 'notifications' and 'activity' on the notifications page.

Your activity will be listed as such - and activity from others - notifications - will appear as such. next up for notifications engine is to clear notifications you've seen, and dim the counter in the top menu.