Its nice to get a photo when it is from people that you don't see often (because they live along way away, not because you don't like them enough to bother, obviously!).
Some friends of ours did one by taking a photo of 4 playmobil people and putting their faces on it, and putting them all on a background of snow/skiing. It was fantastic, particularly since they live in a mud hut in a remote village in Africa and don't get to ski...
When PILs lived in Holland they used to do one every year, because everyone does them. When I got engaged to their son, I got included in the photo too. Now that was cheesy. Fortunately I don't know most of the people it got sent to. And now they're in England so they don't do it.