I had the same issue and I'm not sure what to do now. Keeping my historic album structure is what is keeping me in Lightroom. If I have to recreate all of the albums, it may be time to move to another product. Remigrating 88,000+ pictures is an option, but painful.
The issue seems to be the delay in desktop changes being synced with the cloud. There are a few other things that you would normally expect to see happen fairly instantaneously on the desktop, such as adding/changing keywords, but if you do a bunch at the same time it takes a while before you see the changes. Makes me hesitate whilst it catches up which interrupts the workflow.
Re loosing albums. Although it will be hugely frustrating for many, I'm lucky in that I have decided to use them differently so don't need them in their old form. ie I'm trying to use them more as temporary 'collections' whilst sorting for a client or a portfolio project but not as long term organisation. For that I'm trying to make better use of keywords.
Aaaargh ... I did exactly the same. I see with Lightroom CC (Web) I cannot re-import the local Lightroom collection. I also took the opportunity when moving to Web to import lots of other photos that weren't in LR. I now have one massive pile of photos and zero organisation to them, other than date!!