....I can't afford Photoshop. And realistically I don't need even half the features of Photoshop. I would really like to see an updated version of Photoshop Elements for Mac.
You and a million others.
I've asked the question several times on photography related forums: "If you are a photographer what features in Photoshop do you use that are not present in Elements?" So far the answer is "very little to nothing", but mostly "nothing". My bet is that 99% of the people who want to process images from their digital camer would be best served by PSE. A native PSE will be a bigger deal as most simple can't justify the cost of CS3.
I will buy CS3 because I can get it for the upgrade price but if not for that I'd go with the combination of Aperture and PSE. but for most people iPhoto/PSE makes the best setup.