It would be nice to have the flexibility like WordPress has to use your own SEO URL format. Very cool, but don't hold your breath ;-) It took literally years of asking to get the current implementation of SEO URLs and one-URL-per-page.
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You can alter or change your code as you wish. All true SEO like vbseo us and others that I have seen are done like we all do it the photo or cat id is on the front. Thats how we rewrite it.
I doubt we will be changing our format. You can edit the actual function in pp-inc.php you should be able to remove the .html in there.