It seems that two extremes exist within the Photos app. With images in synced albums, you can do nothing with them - you can't edit, move delete or do anything to them. They're cast in stone.
With albums created on the device, you can do a lot with them, as long as you don't delete the images in the Camera Roll, as the one ones in the created albums are merely shortcuts, and will disappear.
With albums created on the device, you can do a lot with them, as long as you don't delete the images in the Camera Roll, as the one ones in the created albums are merely shortcuts, and will disappear.