You're right that sucks. But if you think about it it's probably more of a technical issue than evil policy, just imagine the permission graph for visiting one of your friend's profiles -- FB would have to do a reverse lookup of all of you friend's friends and filter ones with closed photo sharing (or what if you are a friend common to both?). Further, scaling that out to 750M people is non-trivial.

Anyways, I'm not excusing their policy, but I expect they'll fix it whenever it is technically possible to do so.