Don't know if it's a bug, anyway if I login through site.com/photos/page/password then I'd expect to be taken to the gallery index but instead I land on the password page again. I think it's confusing.

There is really no reason to use that link to log on. It is intended to be a substitute for the actual page you want to view. It gets loaded instead of that theme page when a login is required. Anyway, logon will always redirect you to the page you were trying to access. Since you were trying to access the logon script page, that is where you will land when done.