Most consumer printers are to some extent or another compromises - the idea being to provide acceptable performance both with text and with photos. Laser printers, for instance, particularly those designed for high-volume office work, produce very crisp, readable text, but even when color-capable generally don't do a very good job with photos - because that isn't their job.
Inkjet printers, on the other hand, almost all do a reasonable job reproducing text, and some do a very acceptable job of reproducing photos - given the proper ink and paper combinations, of course. Unsurprisingly, best photo results tend to involve the printer manufacturor's own proprietary premium photo paper and purpose-formulated photo inks. Naturally, as printer capability moves upscale, and supply costs mount, price of printer and price-per-print goes up accordingly (pretty much another case of you get what you pay for).
One of my printers, costing about $400 a little over a year ago, does a fine job - given proper ink and paper - with photos, producing prints up to 8X10 which are to unaided viewing at normal viewing distances all but indistinguishable from conventional photographic prints. While I rarely use that printer for text, it does an outstanding job with that, even at lower quality settings. At top-quality settings, with premium ink and paper, a very-near-true-photo-quality (meaning most folks can't see any difference) 8X10 costs about a buck to produce. I find it perfectly satisfactory - and I ain't all that easy to please.
Fairly recently generally available are consumer printers optimized for photo output - not intended for text reproduction, these machines are able to do away with some of the compromise common to general-purpose printers. One caveat - without getting real pricey, these purpose-designed consumer photo printers generally do not accommodate formats larger than traditional 4X5, sometimes 4X6 "Snapshot" size. Never the less, if the size deal is no big deal to you, their output is very good, the best of them about as good as anuthing you'll get from a photo finisher - provided, of course, you don't scrimp on supplies.
A decent compendium of lotsa good info pertaining to current photo printers may be found
HERE