In my honest opinion (and only cos you asked!), yes. My gut reaction to receiving the second card would be that the family was indeed a little vain, or more likely smug. It does to me come across as 'look how awesome my family is, aren't they photogenic and gorgeous". And if the card is also filled with the kind of ‘news’ about family achievements that can sometimes come close to bragging (ie, listing how well the kids did at maths/sport/dance and how mom and dad got promotions), then that compounds this impression. Though I’m sure this is not the case with your greetings card, Danika!
But I'm aware they are really common in the US, so this is just my personal opinion. I'd much rather have a regular card with a separate photo of the family inside. I 'm not quite sure what the difference is...maybe it's the idea that they are replacing the traditional card imagery with themselves, it’s like they’re saying WE ARE BETTER THAN SANTA!
Ok not quite, but it implies that you’d rather look at a giant pic of the Joneses than see a festive image.… That’s why the 1st one is much better as it still has Christmassy imagery as well as the photo.
Another point is, these cards are becoming more common in the UK but still are not the norm by a long shot. I remember when we were young kids and our uncle moved to the States and married. We very quickly started receiving cards like the first one. We had never heard of this concept before, and we found it odd and really funny that someone would put their own photo on a Christmas card instead of a glittery reindeer! There may have been some gently private mockery… We’re well used to it now if course. But maybe bear it in mind if you have overseas relatives!
I also agree with Margo about sending it to closer acquaintences, not everyone and thier dog.