It's crazy, and extremely disappointing, that this bug is continually ignored. It makes my 60,000 (and growing) family photos in iCloud Photo nearly worthless on the Apple TV. Combine that with the Apple TV 4's apparent inability to use anything but shared albums with the screensaver, and it's like they're daring me to write off the Apple TV and iCPL completely.
And curiously, this issue is strangely analogous to the other glaring functionality inconsistency/lapse that make the Apple TV inexplicably less useful and more frustrating that it should be - the bizarre lack of playlist folders in Music.
Are folders that much of a problem for the Apple TV team?