I am a graphic designer and I have done many CD covers for different types of bands, and I have a few ideas I can offer.
First, I have to agree that putting your picture on the cover is as big a cop-out as ending a song with a fade-out. With that in mind, I find it interesting that if you flip through a DiscMakers catalogue, or some other duplication catalogue, at least 75% of the CD's have the artists picture on the cover. What's up with that?! THere are very, VERY few times this ever works effectively. A couple of examples would be Axis: Bold as Love or maybe Meet the Beatles.
I think the Great Cover Cop-Out started w/ the advent of the cassette tape. Prior to that, the artist had a great big LP-sized canvas to work on. Think of all those cool album covers from the '60's! Suddenly there was only a tiny cassette sized picture, and all the detail went out the window. You had to do a very simple picture that could be easily understood at a glance. Now we have sort of a nice medium w/ the CD.
Strive for somthing that represents the sound of you music. THis might sound silly, but what color does you CD sound like? What 3 colors? Use them, and be consistent throughout the entire packaging (booklet, tray insert, and CD itself). And above all MAKE IT EASY TO READ YOUR BAND'S NAME!!!!!
I have seen so many home-made album covers (particularly metal and rap acts) where the band name is buried or hidden, or written in some weird, pointy, barbed, ivy-covered, dripping, comic-book style lettering, and it's just too hard to read. I have even seen a few where I simply could not make it out. Even if someone just picks up your CD, looks at it, and then sits it back in the bin, you want them to SEE YOUR NAME!!!
Lastly, album covers (like songs) are sometimes better not for what you put in, but what you leave out. Credit everyone who contributed, for sure. Lyrics? Maybe. I find that documenting every lyric can sometimes ruin the mystique. However if your words are a significant part of the package perhaps you want to list them. (they often aren't. A good way to tell is by checking to see if they contain body parts, sexual descriptions, or cliches of any kind. It they do, people have heard them before and can figure them out w/o a lyric sheet.) Thank-you's? Keep them short, and don't be patronizing. THat's just gross. THe only thing you must include is contact info and web address!
Just my $.02.
Aaron
http://www.aaroncheney.com