I love this project, and I love finding a use for those books that I know I just won't read... I think they'd make great gifts! I did mine a little differently, especially after the first one, which isn't as "neat" as the later ones. I keep about 30 pages free at the beginning and the end of the book--that way, you can actually look like you're reading the book, if you're, say, travelling. Also, I don't coat the outside of the book pages at all-I just use a LOT of glue on the inside pages--I think it looks more like a regular book that way. I also used a template made out of cardstock to trace the rectangle on the pages, as it's easier to make sure the pages are cut consistently.
Thanks for the inspiration!