Adobe just released Photoshop Express, their online Flash-based version of Photoshop (think Picnik). 2GB of free storage, galleries and photo editing (including color correction, red eye removal, effects and more). After a quick test drive, I’m impressed.
Sidebar: also pleasantly surprised they’re offering a test drive without the need to create an account—a la sign up forms must die.
I’m curious to see how this will evolve, specifically integration with other sites—they call out blogs and Facebook, but the ability to integrate with Flickr and other photo sharing sites (via API or otherwise) would be a nice touch.