When folks sync their cameras and phones, they wind up with massive, disorganized mountains of images in the form of unwieldy iPhoto libraries. At a certain point (say, a year after the birth of a child) the task of going in and manually organizing photos, albums, sets or whatever is so daunting people just ignore it.
That was the promise of Loom - dump your photos here, and they appear automagically in a timeline you can edit and share. The execution leaves a lot to be desired, as I've suggested.