tinyURL of course would be not so great for SEO. That's more for sharing if you need short urls (Twitter for example).
@IanWorthington: No, sorry. Reason - besides this is legacy being that way since always - is simply that Zenphoto needs to differ the different types (album, image, news, pages and so on) as you otherwise easily run into URL conflicts. `album/image` could also be a subalbum named "image" of the album "album" otherwise.
You can however remove the rewrite suffix after the image suffix (so `album/image.jpg` instead of `album/image.jpg.html`) This however seems to cause SEO issues with google though mistaking the image page for an actual image file though.