Love this - hope it works commercially!

This is elegant and a good idea. I hope it works.

Storybird is a service that uses collaborative storytelling to connect kids and families. Two (or more) people create a Storybird in a round robin fashion by writing their own text and inserting pictures. They then have the option of sharing their Storybird privately or publicly on the network. The final product can be printed (soon), watched on screen, played with like a toy, or shared through a worldwide library.

Storybird is also a simple publishing platform for writers and artists that allows them to experiment, publish their stories, and connect with their fans.

http://storybird.com/