I use other sponsors feeds as well as supply my own to my affiliates. You can see mine in action on this test wordpress blog:
www.singlegirlblog.com
From an affiliate side they are a great way to capitalize on some easy SE traffic. From a sponsor side they are a great way to get some more traffic to your program.
Do them right though. Don't be lazy. Provide good size pics with lots of text with hyperlinked keywords and links going to the tour and galleries works good and makes everyone happy.