What did you update to? I updated my ipad 2 to the 7.0? ( whatever that was) and it organizes my pictures differently, which I like. Also, which I find wierd, any picture I take with my iphone which uses the same operating system, appears on my ipad. Must be that cloud thing!

I heard the new IOS 8 has issues with older devices, but the Air is the latest and greatest, so I don't think that should be affected negatively by upgrades.