I've never seen a baby that didn't look, to me, a) fugly, b) stupid or c) like every other friggin' baby I've ever seen.
When people start showing photos of their newborns, though, you can't win. All they'll get, and all they're after, is "OMG SO LOVELY", "OH, SHE'S BEAUTIFUL" and whatever other crud. In those situations it's a case of "If you don't have anything nice to say, don't say anything at all."
Mind you, I think the last baby photo I commented on was my most recent niece a couple of months ago when she was just born. As usual, just another dopey looking, lead-eyed newborn.
My comment? "I'd hit it." At least it got a laugh from the father.