Yeah, I agree that it would go against the nature of tags to be hierachic. It could even be done however just by properly tagging the photos, for instance only photos of cars would be tagged with "cars" etc.
However the functionality of the drop-down search is still something that would be a nice addition and should be doable via jQuery/SQL interaction I'd think. Populate the drop downs on the fly via jquery then display the actual search results when the search button is clicked.
Could also make for a quite interactive gallery, as people might be more inclined to check a photo out that's tagged instead of having to dig through 2-3 layers of albums to find the photo.