This is a really cool idea and I can't figure out why this thread is hiding here. Honestly this is the first time I have seen it.
About copyrights on photos: Most images are indeed copyrighted, we probably can't use them, even in altered states, without permission from whoever owns the copyright. For this reason I think we should only include original artwork/photos and not alterations of somebody else's work (i.e. computer-generated images) if this thing happens. There is enough creativity out there to make up for what it will lack without the copyrighted stuff.