I took a brief look at this, and it does seem like serious competition for Snipshot. The Snipshot guys need to get on the ball and implement red-eye reduction. That's the biggest issue for point-and-shoot photographers.<p>Snipshot does cropping better -- It's more intuitive to constrain to the photo's original proportions. Snipshot also works entirely in JavaScript -- no flash plugin required.<p>I recently added an option for ourdoings.com users to integrate with Snipshot. I'll keep an eye on picnik too, though. They also have an API.
Wow, this is pretty slick. Never thought I'd use an online-based photo editing tool, but I can see myself using this when I don't want to open up Photoshop on my other computer just to make a quick crop/edit to something.