Hey,
I just switched over to Livebooks. It's an amazing product. It's really really easy to "edit" and upload pictures. When you say that you want them to build a site for you, do you mean get a custom made site, or a pre-designed site?
My site is
http://www.fatherlyfilms.com if you'd like to check it out. To answer your question, does it deliver on what it promises; yes it does.
They make a "second" page that allows search engines to easily find you. So a client that searches "Montreal sports and fashion photographer" or "New York photo journalist" or what ever..."Tokyo food photographer", as long as you have the right keywords (or meta-data) it is very easy to find.
Also, although many people say that flash doesn't allow search engines to pick up on keywords, that's not true. Google and Bing (not sure about yahoo) pick up keywords in flash. You can ask them to convert the HTML page (it's called a search-landing page with them) to a iPhone or Blackberry friendly page.
Also just if you want, you can get a 10-day trial (the trial is a "full" site, just it hasn't gone live yet, so it's on a
http://www.livebooks.com/user/domain site. just remember to cancel if you don't like it after the 10 day trial or you pay!)
Also, your photos meta-data's keywords are also supposedly picked up on search engines thanks to Livebooks, although I have no proof of that.
What people are saying about the EDU and the blog isn't exactly right (not saying you guys aren't right or anything though!). The EDU is a significantly cheaper product, but also significantly stripped down. Before I went with Livebooks, I spoke with a few of their designers or support staff (not sure what to call them), because I qualify for the EDU, and they all recomended against it.
As for the blog, for 100$ you can get a wordpress blog integrated into your site, like
http://www.chasejarvis.com . Go to his blog page and you'll see what I mean. It doesn't necessarily hurt the SEO (search engine optimization). The reason people are complaining is because they feel ripped off because older clients that bought a while-back cannot integrate their blog (yet). But the wordpress that's in Livebooks doesn't have much, if any plug ins (not sure). Also theirs ways around it while still getting your blog as another page. I just bought the wordpress blog add-on but it's not up yet, but their service is amazing.
Hope that helped!
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http://www.fatherlyfilms.com