I agree with FreqFlyer - it depends on the person. My mom enjoyed old pics and I put together a little dollar store album of the ones she had pulled out from her box of photos. I'd say take your cue from your loved one and display what brings him/her pleasure.
Bobbi, I think it depends on the person. Some would really enjoy those photos to help bring back old memories.... for others it would show that they can't do those things anymore thus making them feel sad.
For my own Dad, I let him pick out what pictures he wanted in his room. it was interesting, as some I would have never thought about, such as his 50th year college reunion.
I have pictures of my mom and her girlfriends from her younger years when they went to camp and vacation. I have pictures of holidays and our family vacations. She likes to look at them, she remembers her old memories better. You can also label the pictures this way the staff knows who is who. I know the staff at my mom's facility love looking at her pictures. She a picture when she was learning how to Fence, she was very active in her youth.
For my own Dad, I let him pick out what pictures he wanted in his room. it was interesting, as some I would have never thought about, such as his 50th year college reunion.