While it's still a teaser at the moment, John Nack (senior product manager for Photoshop) has confirmed the development of Photoshop Express. It's a free online photo editor that's not meant to replace Adobe's current offerings, but "make Adobe imaging technology immediately accessible to large numbers of people." And from the screenshot here you can tell it's not even a dumbed- down Photoshop, but an entirely new product (that reminds us of something from the new iLIfe).
The announcement follows Adobe's implementation of Premiere Express, their online video editor, and it signifies a fairly progressive market plan by Adobe. In a content creation culture where every teen is a video editor, the democratization of powerful multimedia tools online allows Adobe to reach out to this new generation without abandoning their industry professional bread and butter. And it makes us want to remind kids that we once edited a movie on a VCR (after walking 30 miles barefoot in the snow, aiming our kite for lightning to capture the electricity to do our work). [adobe]