I missed all the drama, so heck, I may get flamed, too! I work all digi now, but most of my books (including the Disney ones) are still put in traditional albums. (Nowadays with the digital stuff I get 12 x 12 layouts printed and then either slip them in an album with drop in pages, or I affix the layout to an album page with adhesive, like a big ol' photo.)
I have made a couple of photobooks (Creative Memories and Heritage Makers). They are nice enough. I haven't tried Shutterfly, although I do have a credit to use up there, so I should get myself in gear and put something together, I suppose. I'm like Lisa in that I prefer stitched binding instead of glue; both the CM & HM books have that.