In one of those "Why didn't I think of that?" moments, Mosaic offers the ability to create a "picturebook" from photos you can select from your iPhone (I would assume it will work with iTouch and iPad even if it's not explicitly supported). This seems like a very cool product, and is already causing my brain's gears to churn away with birthday and Christmas gift ideas. A very nice product (hopefully the resulting book will be every bit as nice as the promotional video/pictures show it to be).
At only $20 per book, seems like a good deal to me.