You asked: _+Where is Apple when you need them?+_
This is a user to user forum. If you want help from Apple, take your machine to an Apple Store Genius or arrange a phone call:
http://www.apple.com/support/expert/
And, you wrote: _+I think Apple ... released a product ... without proper testing first.+_
Apple has an extensive end-user beta test system for all OS updates and upgrades. They did test the software with end users. Personally, I have upgraded three Apple computers, each with multiple iPhoto Libraries, and I have not lost a single photo.
So... there must be a difference between the "standard" or "normal" machines used in beta testing (my machines are plain vanilla) and the machines experiencing this problem.
I suggest that every user who is having the problem post a list of all third party applications and utilities that were on their machines before the upgrade. Perhaps - as a community of users - we can use our keen eyes looking at the lists of third party add-ons and identify a source of the problem? And, if we can identify the problem, we can report it to Apple at:
http://www.apple.com/feedback/macosx.html
As the shadowy person says in 'Disclosure': "Solve the Problem". 😉