Although I am happy with the "fix", just out of curiosity, how does "respect the paging " work? I might have expected it to iterate through the first page and then stop (which would have been OK in my example as there were only four subfolders), but it doesn't do any iterations at all.
I haven't checked the paging behavior when used on slide pages. When used on index pages, using no attributes at all should give a correct paging (i.e. iterate through the same images as the ja:rowiterator, ja:coliterator pairs do).
If you wish, then you can use relative references when using ja:fileiterator on slide pages, you can for instance write:
<ja:fileiterator start="-3" count="7" nodirs>
to iterate 7 images, starting 3 images before the current slide.