One of the things I like the best about the combination of Google's Picasa and Picnik online editing and desktop software is the speed in which you can edit your images, post them to friends and family or to your blog, and identify individuals automatically. The editing tools available with Picnik are almost as rich and far easier to use than Photoshop; although some special effect at Picnik require a $25.00 a year membership, the framing is free.
You can see more photos of my alt Ryce Skytower on his own blog here: http://ryceskytower.blogspot.com/
One drawback of Picasa is one that is very frustrating and one that Google can easily fix -- you cannot set up folder hierarchies like you can in Flickr. I have over 800 folders of photographs in Picasa; setting up metatags (master information tags) for placing them in grouped folders would be very easy to do -- and something that Google refuses to implement despite a huge number of requests from their users to do this.