A coffee table style book is a great idea and also sounds like a nice gift idea! Hmmm....
Not to sound too modern but has anyone given thought to using LCD TVs (or, despite the higher power requirement, plasma)? Many of them can auto-display images from a USB key. Obviously it's cost prohibitive to buy, install, and power a dozen TVs, but thinking if the goal was to have only a few, it might not be that crazy. A quick look at slickdeals shows a noname 55" LCD 1080p for $350, a 29" 720p for $79.
I have my Xbox linked to my Photo library. So I can pull up any photos on my 60". It's nice, but not something I've done recently.
I also have used those photo frames. OK quality, but nice.