We have a box for each kid. They keep all the pics and art we want to scrapbook (someday).
First, we decided to paint the walls and took down everything. It was beginning to look like a shrine to US! We opted NOT to put most pictures back up.
Second, I got "brag books" for the kids to keep their favorite/most recent pictures from vacation in and a few extra of their school pics. That way we have them when we need a pic for school or a project.
Third, I am keeping that box in the basement for each child, and name and date everything before it goes in. Only our "favorites" or important mementos go in.
Finally, all digit pictures are organized online on a digital album. We keep all in our own library, but only post what we want family to see on a secure account.
A friend once told me, don't worry about the "baby scrapbook" until the kids are in high school. When they are littler you are so busy taking care of them and play chaffer that it's unlikely you have the energy to scrapbook. She said once they are in high school they are so busy with their own lives, that the dining room table can be your headquarters without worrying about little hands disrupting everything. She said the key is to STAY ORGANIZED NOW - date stamp, write a 1 liner why it's special and don't let things stick or get folded.
That's what I'm doing. I hope this helps you too!