Looks great, but just a quick one: don't charge $5 for premium product, it just doesn't like premium. Either give all features for free for launch period or charge more.
In fact, the free account has all the features of premium, except the possibility to directly upload photos which we haven't implemented yet.
Just trying the waters here with a concept that we wanted to get out ASAP, to see what people think of this kind of story visualization :-)
We definitely need to spend more time with the pricing.
Customization is probably a good thing, i.e. the subdomain and own-domain thing.
Physical stuff is always good, so I'd love to pay for an automatically created photobook/photobook-ready-PDF (I hate to do them in the crummy software supplied by the printer). Or, go one step further even and allow direct upload to Lulu. Basically a Make-your-own-coffee-table-book.
In any case, you might want to think about specifically targeting power users from the start, instead of going for the freemium market.