This model definitely does not use pigment ink. In fact, most of photo printers in the lower echelon of Epson's catalog do not. Anything you see advertised using a Claria ink-set is going to be dye based. Although I am sure it would void every warranty, and be highly discouraged by every Epson employee alive... aftermarket ink cartridges with pigment based ink will work just fine so long as you don't let it sit too long.
The ideal alternative, albeit the less affordable one, is, of course, to take a step up to committing to a prosumer line model photo printer. The SureColor P400, 600, 800, R800, R1800, R1900, R2000, R2200, R2400, R2800, R2880, all are excellent in their own right. Outside from Epson, there's the Canon Pixma Pro 9500, and the Canon Image Prograf Pro 1000. I'd personally advise sticking clear of anything made by HP, but that's my personal bias of course. Make the decision you feel is right for your application use.