Apple has replaced the Shared albums by the Shared iCloud Photos Library - I second muguy's recommendation.
But the Shared library has a long way to go. Currently we cannot even share albums in the Shared iCloud Library, and still not share folders. So it will not solve your main concern. See the first paragraph: How to use iCloud Shared Photo Library - Apple Support
iCloud Shared Photo Library lets you share photos and videos seamlessly with up to five other people, so everyone can collaborate on the collection and enjoy more complete memories. Learn how to set up and use a Shared Library.
But the big improvement is, that we can share all items from our iCloud Photos Library, in the original quality and with all metadata, and we can work together on the photos and videos. When we share an item, the others can add adjustments to it or change the metadata, and these changes will sync back to our library.
But we cannot yet share the structure of our Photos Library.
When we share photos and videos, we will still be seeing them in their original albums and folders, but the others will just see a flat collection of shared items and need to recreate the structure, very daunting. I am adding the names of the albums as a keyword to the shared items to make it easier to recreate the albums.
If you want to set up the shared library, you have to discuss this with people you want to share the library with. You have to make a plan, how you will be using the library. You can only share the photos from your iCloud Photos Library. This is the most most important library we have, because it is also the System Photos Library and the library we are seeing in the Media Browser in other apps. The photos we share will be removed from our iCloud Photos Library to the shared library - we can still view them, after we shave shared them, but others are free to change them. We will want to share our best photos, but sharing them will put them at the mercy of our sharing partners. And we will certainly want to have the shared library flooded by dumping each and every photo and videos into the shared library right from the camera. Our best photos would be drowned in a flood of garbage. And the person setting g up the shared library will have to pay for the cloud storage used for the shared library. All subscribers will need to be considerate and understand what they are doing, when they change team in the shared library or add and remove items.
And if you have devices with older system versions, you will no longer be able to see the photos you have shared to the Shared iCloud Photos Library on these older devices. All subscribers will need iOS16, iPadOS 16, or macOS 13 on all devices, where they want to access the photos from the Shared library in Photos.