Yeah, I posted this about 2 years ago now, so I don't blame you for missing it. But it's also in our photos section for the first game:
http://www.planetxbox.com/shenmuedojo/shenmue_photos.shtml
Apparently, in the old old days, this was going to be what the old photo of Iwao (found in the basement) would look like. My guess is that the developers figured a picture with drawn characters would cause a huge inconsistency, thus turning them look realistic for the final version.
By the way, you should flip it horizontally like I did.