Adobe has just released Photoshop Express as a Beta. For now, it is a web based application that not only provides very basic photo editing and enhancing abilities, but also 2 GB of storage for your photos.
In order to take it for a test drive, I signed up for an account, and posted some pictures from our San Francisco trip in 2007. Overall, it looks like it has some potential. Anyone who uses services such as Flickr, Photobucket, Facebook, or Picasa (which I reviewed earlier) should at least take a look at this.
Some pros and cons I initially found after a quick test drive: