One of the improvements with 4.2.2 is that the Gallery opens straight into Albums. On mine this shows:
The Show/Hide albums option basically works how it should do now!
Previous Phones: HTC Google G1, HTC Hero, Nexus One, Nexus S, HTC Desire HD, Samsung Galaxy SII, HTC Sensation, Galaxy Nexus, HTC One X, Nexus 4, HTC One
Previous Tablets: Motorola Xoom, Nexus 7.
Current: Nexus 5, Sony Tablet Z LTE.