Jewelry - I have a necklace with a picture of my kids that I ordered for myself a couple of years ago. Everyone absolutely loves this necklace, I am constantly getting comments on it. I have also given them as gifts and they have been very warmly received. A wide variety of photo jewelry can be ordered relatively cheaply from Snapfish or there are also Do-it-yourself kits available. If you try the kit, I would love it if you would send me a comment and let me know what you thought.
T-shirts - Use an iron-on transfer to create your own personal design. My mother and I make a different Christmas themed shirt every year for all of her grandchildren. This year we designed it to look like the superlative page of a yearbook. It is pretty cool to see all the kids reading the shirts to see the current year's theme. And of course everyone in the same shirt makes for a great photo opportunity.
Cards- Use your pictures to create special cards for special occasions. For example, make a christening card with a special bedtime prayer. I do this for a boy or a girl and personalize it with pictures and the baby's name.
Photo Books - As well as the standard photo book ideas to celebrate the passing of a season, another year or a trip, here are a couple of other ideas for setting up your photo book:
A guest book for a wedding or party
A cookbook - combine pictures with special recipes to create a cherished heirloom. I did one for my mother and mother-in-law and they both loved it.