I stumbled today across Sumo Paint (nice name), a free Photoshop-like online application currently in beta.
[ http://www.sumo.fi/products/sumopaint/index.php?id=0 ]
It seems very promising. The interface would be very familiar to Photoshop users. And quite a few of Photoshop's features are there too (filters, brushes, layers, layer blending modes, etc.). Some key features (for my purposes, at least) are missing, such as a pen tool, support for channels, support for pngs, tgas, or other formats (you can currently save your work as a jpg only), etc. I would also like to see some collaboration capability (the primary reason I go looking for online applications).
The software is still in beta. And updates seem to be coming every 2 weeks or so. So I am hopeful.
If you are interested in that sort of thing, you may also want to have a look at Aviary Phoenix [ http://a.viary.com/tools/phoenix ].
