Now that many people have digital cameras and cameras are even invading or mobile devices, photos are everywhere. Undoubtedly there are probably many that don't need to be kept but what about all those others?
Here are some of my favorite tools, depending on what you want to do with your pictures:
Photo storage & sharing: Flickr - I love that your friends (or anyone if you choose) can comment on your photos. It's what we used to do anyway, sitting with friends and family and passing photos around.
Photo printing and photo gifts: Shutterfly - I love that it is now possible to publish your own picture books with commentary. After being treated like royalty at an Indian wedding, I took my photos and made a gift for the bride's parents which was very well received and much better than if we had spend 5x the amount on some other gift.
Stock photography: iStockphoto - for $1-$20 (depending on the size) you can get stock photography for a graphics project, your blog, a presentation... I love it.
Online Presentation: Pagii - Do you love to scrapbook? Want to display your photos in a creative way for family and friends? Pagii is like an online scrapbook that allows you to do all sorts of creative things with photos (the screenshot on this post is a Pagii page).