It would be nice if you didn't have hand-code smilies or do any other kind of coding. Have an easier interface for that. And how about photos? It all seems complicated. The profile section might be tweaked a little too, to put more information in there - as the user sees fit.
Warren - welcome and great to see you here. Hope you'll stick around. I wish I had better answers for these questions, but I don't personally plan to implement most of these particular suggestions.
A lot of this is a question of personal preference, and I specifically chose PunBB over heavier forum software like phpBB because I didn't want a really bloated interface or the really cutesy stuff with lots of little icons and pictures. I guess some people might find a WYSIWYG editor useful (and there are some mods to include one), but I don't think that the forum markup is that complicated, especially if you only want to do basic stuff like quote people's text or post photos. I know it may seem a little daunting if you haven't done a lot of web programming, but it doesn't take that long to get used to, and most of the common forum software these days does use similar markup. I'm not against adding features if they're really in demand or helpful to large numbers of people, so I'm not writing any of this off completely, but so far, I don't feel like there's a big need. I'm happy to hear if other folks disagree, though.
As far as including extra fields in people's profiles, I'm not sure how hard that would be. Sanzui's new setup is pretty fancy and lets you include a lot of stuff (it's like a mini social network), but I'm not at all that ambitious. The only thing I can suggest would be linking to your profile elsewhere in the URL field. We could also have an "introductions" thread if it would help people to get to know each other or post information about themselves. What kind of information specifically did you have in mind?
Posting photos does require that you have somewhere to host them (there are free services like flickr / photobucket which will work), but aside from that, you just put them inside an [img] tag with a closing tag on the other side of the url. I am not a fan of the graphical smilies - you can choose to have them displayed graphically on the forum if you like, but I don't see any reason to encourage people to use them. I don't think typing :> quite equals hand-coding - it's pretty standard, and doesn't involve that much typing. There's a little howto if you're not sure which ascii smilies translate to which graphics.
I answererd Lew's question about RSS separately on RFDT (folks - it is possible to subscribe to new or recently active topics via RSS).