To some people, 1,000 photo albums sounds like a lot; a handful each for pets, cars, significant others, and vacations would about cover it. But serious photographers take lots of pictures, and for the sake of not stifling them, Google's raised the per-Picasa-account limit on albums to a whopping 10,000.
Think Picasa's engineers have too much time on their hands? Look at it this way: before this update, if someone did the not-impossible and created a photo album a day, he or she would have hit the limit in under three years. So Google's potentially meeting an authentic need here.
There's a way in which this Picasa development might be meant to benefit another Google product, as well. On the Google+Picasa+Blog%29">Google Photos Blog, a pair of software engineers wrote, "We heard that you needed more room, and because we want you to keep sharing your photos and posting them to Buzz, we've worked hard to now raise this limit to 10,000 albums" (emphasis ours).
With respect to how Picasa now works, they then continued, "Since we want the Picasa Web experience to be really fast, the default view still only shows a hundred albums. If you have more than a hundred albums, you'll see two links at the bottom of your screen that let you to load the rest."
It's hard to imagine that anyone will push for additional changes in this respect anytime soon (or possibly, anytime at all).