When a member joins the site, it is correct that a default album is created for the photos, videos, and music for example called "Artualite's Photos". This is created for those who either do not know "how" to create separate album or choose not to create one. This give the member the ability to upload media without having to create a album first. I think this feature is a good thing.
As for hiding private albums, we have already discussed the issues with Albums that show with a Lock and labeled as private. These albums do not show on the homepage (unless you are not logged in), instead they show whenever you view ALL photo albums or albums from a specific user that has a private album.Not sure that this will be addressed to completely hide them or not.
Chris