Not $11 superior. If it offered some funky filters Instagram style you could perhaps capitalize on the Polaroid/Lomography type of audience. Or build a Flash driven picture uploaded that would use the web cam.

The way it stands is you're offering a pretty page for photos at $11 that doesn't target any real customer niche and does what a Tumblr blog paired with a Flickr account would do for free in a more flexible way.