I agree with taking your own pictures.. as long as you have a decent camera, it really isn't hard to do. Sure, you won't have the "professional" backdrops, or may not get "professional-looking" pictures, but to capture the child's true essence or their true facial expressions is well worth it. Most of the time, my dd's school pictures have them looking too stiff, and not smiling their true smile. And the studios such as picture people, sears, etc. have had them looking too 'posed' in my opinion.
Sure, I still have their school pics taken each year, just to have them, and I've taken them to the professional photo studios as well, to have professional looking pictures taken.. but most of my favorites of my dd's have been the ones I've taken myself.
Here's just a few examples of ones I've taken in the last couple yrs... excuse the size differences, having a hard time re-sizing them today.
This one was just a candid shot during a nice fall day as we were all raking up leaves (and she needed a break, lol).
I LOVE this one, cause this just totally captures my younger dd's personality.. she was riding her bike on the porch at my relative's vacation house, and she was not wanting me to take a pic of her.. so she was giving me "the look", hehe.
like to take a pic of both dd's in their halloween costumes each year, so this was a "posed" pic in that I had her in her costume outside.. but i love her expression/pose.. totally "her".
And this was just a candid shot of younger dd as she was playing in the sandbox.
I like doing their Christmas pics each year too.. we have a lot of out-of-town relative, so send a pic with each christmas card. And after the first few yrs of paying for the pictures, found it was just as easy to take them myself, and a whole lot cheaper since I need about 40 copies of the pic. So this was one from last year.