I think I would only care if they tag me AND share the photos with others. If they intended not to share it with anybody, then I don't care whether they think I'm in the photo or not. A more reasonable approach would be something like "if a photo is shared, it must be shared with the people tagged in the photo".
As far as getting access to the entire album, not everyone uses albums for the same reason. I can't, offhand, think of a situation where the rest of the album would make a difference, but it's not unreasonable to expect that one might want to share only parts of an album with some people.
I store most of my albums by date and not necessarily by context. So if you were to go through an album I would have to explain the context of each three or four pictures. I'm very particular about whom I share photos with so having a conference photo tagged and shared doesn't bother me. Having a family photo shared because I tagged the conference photo and they were in the same date based album is a deal breaker.
This. Private tagging and public tagging should be separate. I'd love to be able to tag the pictures with my kid in it, who is 2 and has no email address or, of course, Google+ account, and a few other people/animals who also don't have these things either because they don't care to or because they're animals, because I want to orginize them. I can do this on my local computer with desktop Picasa but then I have to start worrying about loosing my local data again, the whole reason I paid for the extra storage on Picasa in the damn first place.
As far as getting access to the entire album, not everyone uses albums for the same reason. I can't, offhand, think of a situation where the rest of the album would make a difference, but it's not unreasonable to expect that one might want to share only parts of an album with some people.