I agree, I really want to do some kind of grouping of resources (categories maybe?). However Mammy seems to be pretty against this, I think what he wants to do is replace the gallery screen with a 'search' page and enforce the use of tags for the sprites to appear in search results.
Why not do both? Being able to search and tag sprites/tiles is definitely something vital to the gallery, but folders/categories are just as important, (especially to those submitting original artwork/drawing and those who simply want to browse).
If you were to implement categorization it wouldn't need to include excess sub-categories, just a few simplified main ones, and that's where the usefulness of tagging submissions for the search would come into play the most. For instance if there were only three main categories, (one folder for all Zelda-related resources, one folder for all miscellaneous game resources, and one for all original artwork), you'd want to use the search function to find resources from a specific game or for a specific character.
At the same time if you weren't sure exactly what you were looking for you could browse through the main category, (maybe having the option to have them listed by popularity, date added, user, comments, etc.), without needing to do multiple searches. It's pretty hard to accurately search for something if you're not exactly sure what you want.
While the search will definitely help people quickly and easily find what they're looking for, not having browsable categories will hurt those who submit original artwork trying to get feedback and those undecided on what they are trying to find.