I really like seeing all the responses on this one. It is one of those things that I had never questioned, and I like that it was DS's "do we HAVE to?" that made me think that well, no, I guess we don't have to, but for now we choose to. And now I don't feel so bad about buying the cheapest package. I was figuring I was saving one for each of them in their baby books, along with sending them out (my dad and sister put them on the fridge each year and ask for updates), b/c I remember enjoying seeing my own photos as a kid. As an adult, though, I never took them from my parents' house, and if I never see them again, I don't know that I'll care.
On the family photo tip, I just found out that our parish is holding free photo sessions for parish families, and giving away one 8x10 (huge!) to each family who participates (and is then included in the parish directory). We also have the option to purchase more. I signed up for a session this weekend.