I like the idea and apart from security issues, would it actually take off??
Security issues are the main problem, so I hope this won't take off 
My first idea when reading the title was to sha256 an image file, enter that into Bitaddress.org's Wallet Details tab, and get a private key. It's easy! But creating a backup is not easier than backup up a "normal" wallet.
I think Photo Seeds has a fundamental flaw:
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Odds are much higher that someone will remember a photo or a number of photos, and the order of those photos before they remember 12 random words.
If you've ever played the memory game (kids are much better at it than adults), you'll know you can barely remember a few pictures. And every new picture you see makes it more confusing.