I can understand being over protective, this is your child (is it your first?) and when we're pregnant hormones can make us have more extreme emotions. I do however, find the request a lovely one and your refusal of it slightly unreasonable (in my opinion, I hope that doesn't offend you!!). I see it as a future grandfather wanting to have pictures of his future grandchild and I don't find it weird in the slightest.
I think it's important to include grandparents as much as we can, especially the parents of the baby's father as they so often get overlooked in favour of the baby's mother's parents (and they are all equally the child's grandparents, or at least, they should be). We always sent my husband's parents pictures of our scans and the only reason they wanted them was for the same reason that I liked to look at them: to see my future child and feel a happy glow at knowing they were growing well.
Also, when you say anyone making a scrapbook of your child would need to ask your permission; I can understand if it's just an acquaintance or a relative you don't know very well, but surely the child's grandfather wouldn't need to ask permission to make a scrapbook of their own grandchild? Maybe it's just me, even though they're not my parents, I love my MIL and FIL a lot and know that my son (and my new baby) is a part of them, so belongs to them in a way. I wouldn't mind them making photo albums, scrapbooks or even shrines
to him without my permission. He's theirs and a part of their family.
I hope this doesn't become an issue for you and that if he wants something like that again he explains why. We don't need extra stress in pregnancy!
x