Storybird is a new site (beta) for creating digital storybooks. This reminds me of My Story Maker/Myths and Legends w/out the animation. For example, you can create a book w/ digital art (your own or other users) then add text at the bottom of each page just as Story Maker. However, in SB you just create a "still frame/scene" and have the story progress page by page.
One aspect which concerns me is that Storybird is not filtered. This could potentially allow students to post/view inappropriate content. While SB does have the right to view anything on their site there is no official filtering policy going on, just a typical terms of service agreement.
This is still very early beta so a lot of features are not available such as printing or embedding a finished product. Although, I highly recommend giving Storybird a look as it is very easy to use and makes some nice finished products.
Click here for more info.
How to Video on how to use Storybird...