Beyond the question of it working is how does it look. Be sure to preview what you do on a viewer for the Sony or Nook, as something that looks fine on a larger screen may not look so great on smaller one. It could annoy the reader if you have your beautiful pictures taking up most of a page and they have to turn pages every second or two to actually read the book.
Your readers might be happier if you group pictures together or provide a link so they can jump to them if they are so inclined.
My experience is needing the picture to fill the page to see any detail at all on e-ink devices.
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