Leopard and Rosetta chew through a bit more memory than Tiger did, making 2GB likely the minimum you want to run without slowdowns (though you will likely get pageouts at 2GB in Leopard, you probably won't live with the spinning ball.)
So running Photoshop will likely bump you to where you want to stick 4GB in it.
It should be "under $70" with tax and/or shipping for the 2GB SO-DIMM. Since that is what is here to grab one off the shelf. So there isn't a big reason not to do it.