The printing will be the only downside, none of the digital POD devices really make great photos especially when you are dealing with either just the K channel or trying to get an uncolormanged device to print neutral gray using CMY.
If you feel like doing the work to try it, go ahead and do so (maybe publish it for the Amazon Kindle too) as I'd be interested to see what the printing really turns out to be. But you will need to decide if pages will be full color, full color grayscale, or just black ink. Maybe you can mix them, maybe not as it depends on the system used and the workflow used to drive the machine. Just remember that if you publish for Kindle it is grayscale only. And no I don't own a Kindle (or Kindle2 or Kindle3) but if you are going to build it electronically, might as well open yourself up for alternative outlets.