why don't you try Simple Image Gallery from joomlaworks.gr? you can find it at
http://www.joomlaworks.gr/#downloads_section
David,
The reason for this is to prevent people from accessing the image files directly. While this is not an issue with family photo sharing sites, G2 is designed to allow professional photographers to showcase their work with the system and even sell the images directly. Thus the need to "protect" the media directory.
For your family site, don't forget to look at the integration with the various photo printing services. That way if Auntie Em wants a print of little Joey, she can select the image in the gallery and with a couple of clicks, purchase a 10x12 glossy from a photo print service ;D