I must say I was mightily impressed. For a web app, it was slick, intuitive and worked nicely. (Granted I only cropped an image, but still, compared to the Windows picture editor it's a step or two ahead).
The loading screen is worth seeing - they've definitely followed the light-hearted tone used by Flickr for their website. So, in keeping with the name "Picnik", the loading screen informs you that the program is:
- Laying the blanket
- Buttering the bread
- Planting trees
- Warming the breeze
Luckily ants and yellow-jackets are not mentioned...