Finally!
I have been waiting for this for a long time. As a (year ago) Mac convert from Windows, I haven't found anything to replace my Paint Shop Pro for graphics and photo editing - layers, selections, brush tools, masks, color balance, levels, precise color correction, etc. I believe most of this ability will be in PSE6. CS3 isn't priced for home users, and I wasn't interested in PSE 4 since it was 2 years old and not a universal binary. I've been running Paint Shop Pro in Parallels just hoping that Adobe hadn't abandoned Mac PSE.
iPhoto would work for maybe half of the photo editing I do for simple brightness/contrast and very basic color correction, but the biggest problem in my opinion is that it saves such a poor quality copy (high compression possibly?) of any photo that I've edited in it. I can't get quality prints from it. I haven't looked at iPhoto '08 yet, I understand that it might not save copy of copy of copy (after edit of edit of edit) but rather make all changes from the original (similar to Apeture), that sounds interesting to me.
The photo/album organization of neither PSE nor iPhoto interest me. My use would solely be editing and creation ability.