I love this idea. It's modern, looks great, it's easy, and the sites aren't a mess of Flash. I mean, don't get me wrong, Flash has its place and I can understand why so many photographers gravitate toward it but a lot of times I see user experience go by the wayside as they focus on making everything flash, fade, pop, fly, etc.
I do web development for a living and I always cringe when I see services like this because I feel like they're the competition. People see cheap beautiful and easy templates for $12/month and then a custom website for a minimum of $1300 and they're very likely to choose the former. But I like this anyway and actually thought of creating a similar system as an extra service to capture the segment of my market that wants it. Awesome.