How many people are buying (not pirating) Photoshop to make basic changes to their photos? Maybe Photoshop Elements (if it still exists), but other than that I don't think this would really damage the Creative Suite all that much as they're quite different markets.

All the people I know who might use a web-based image editor have either been struggling along with Paint or pirated Photoshop at some point.

adobe already has photoshop.com for web-based image editing, so i doubt picnik changing hands has any affect on them.

But how many people knew of it, or use photoshop.com? I had never heard of it until now. Adobe's doing a pretty piss-poor job of marketing it if it is supposed to be a stand-in free web-based version of photoshop for people to do basic touch-ups on their pictures ...