I haven't given it a spin, but this looks interesting: picknik.com. An online photo editor that can tie into other sources like flickr for images. While I don't have a lot of interest in using something like this myself, it might make a nice tool for someone less heavily into photography. If it's simple enough, it might also be a nice transition for someone who's not that computer savvy as well. That could make for a smoother transition for those folks that are still hanging onto their file point and shoot cameras.