I love mine. I bought a scrapbook from Hobbycraft and regularly print photos and because the sprocket paper is actually stickers, I can just stuck them straight in. I then add notes about what we got up to.
I don't find the paper too expensive, it's £10 for a pack of twenty in Argos. I've never tried the fake paper.
I like the app too so I can personalise the pictures with little graphics or slogans.
It's not a replacement for real photos but it's a lot of fun.