Unless your users are going to an open folder with a directory listing of your images, I don't think folder structure will significantly increase or decrease retrieval speeds for your users. As other people have said, make sure indexing is turned on. However, if I were you, I'd look into writing (or copying and pasting) a service that dynamically serves the images, rather than storing them directly in your web file structure. Look into using LibGD within PHP -- it should be preinstalled on most LAMP servers.
Disadvantages:
- Serving the images via a service will be a tad slower than providing direct links
- If you use a backend image store, such as a database, it could crash and render all of your images temporarily unavailable
Advantages:
- You'll save storage space by dynamically resizing the images to thumbnails, and make maintenance easier
- Generally, processor speed is cheaper than storage space
Using URL rewriting, you can even turn ugly URLs such as
/imageServer.php?userID=12345imageId=67890&size=full
into something sleeker and more transparent to your users:
/jeremyZX/images/myPhoto.jpg
/jeremyZX/images/tn/myPhoto.jpg
This will give the apperance of an entire directory structure of images, whereas they're really stored in whatever backend format you'd like.