I must say that I've never heard anyone say, "O-Sensei ni rei" or the masakatsu agatsu O-Sensei quote as a form of reigi. (We don't use the term "O-Sensei")
I'm not saying it's wrong; you or anyone else out there can say whatever you like. It just sort of rankles me to have everyone saying little bits of philosophy en masse.
I, for one, do not put anyone's picture in the kamiza. We have photos of our teachers and their teachers on a side wall of the dojo at the back.
We bow twice, clap twice, and bow again. The teacher turns and everyone bows one time as a respectful greeting to each other and some people, or everyone if they want say "onegaeshi mas". At the end of practice we do the same thing and everyone says "thank you".