Adobe Photoshop Express

Couldn't afford Photoshop? Photoshop elements still to expensive? Both too complex for your bog-standard digital-snapper?
Try Photoshop Express:

Simple, Fun and Accessible(?)

With Photoshop Express, digital photos can be uploaded and sorted anytime, edited non-destructively to always preserve the original image, and shared from anywhere, on any Web browser. In a few easy clicks, Photoshop Express empowers anyone to make standard edits, such as removing blemishes and red-eye, converting to black and white, cropping and resizing, and much more.

Full service is available to US residents only at present.
It does work though for the rest of us, just a bit slow.

Adobe Photoshop Express testdrive (no need to register).