Everytime we have used picasa at our desktop, we have had the ability to manipulate, edit your pics, crop them, resize them..., but why do we need to download picassa at our PC when google likes to have everything on the cloud???, even within its new operating system...
That is probably why Google has adquired Picnik!!, ...hmmm, I bet my house on that :)
Google has announced that no changes will be aplied in short term to picnik, but most surely we will see a new picassaweb called just picasa and picnik totally integrated with it!!. Actually Picnik is more powerfull that picasa in image, pics manipulation.
Picnik is the third company bought by google this year, after Aardvark and reMail...., It is obvious there crisis period is over, although i may ask ..has Google ever be in a crisis??, ...even when Microsoft is kicking up and hard with bing streetview, ot "touchable" windows 7??.