Yes it is overkill for simple things but when you need the power, you need Photoshop. You can buy Photoshop CS quite cheaply then upgrade to CS3. That's the cheapest (legal) route to CS3 ....Isn't CS3 like a $700 package?
A bit of overkill for some simple photo editing. I too would like something that does a bit more that iPhoto, but without breaking the budget. I think PS Elements, when the UB version comes out, will fit my needs. Anyway that is more in my price range for a photo editor.