I've seen this done. The kids write and illustrate (using photos, a toon program, or their own drawings), and then read to the students. They may use spiral binding.
My kids actually made books in elementary school. They were bound books with blank pages. The kids figured out the story and made dummies before writing the text and drawing their own art. My daughter did one on dinosaurs with a fact per page. They set on the book shelf next to my books, alphabetized by last name like in a real library.