I think it was about a year and a half ago when Adobe told me they were working on a then untitled online version of Photoshop. This week that project now called Photoshop Express finally launched. With Express you get a paired-down version of Photoshop with the basic photo editing tools like touch-up, red-eye reduction, saturation controls and cropping. Since it is an online tool you can upload the photos you need to work on to the 2GB of storage you get free with each account. I am not sure that I would ever really have a need for this but I know I am not the target for this product.
It is an interesting first step into creating a true online application. When you use it you feel like you are using an application and not a web site or web application. It will be interesting to see how this evolves with the upcoming releases of Air and Thermo.