I was more than disappointed to see that Picnik, the photo editing site I've used for a few years, is closing. I use Picasa to do basic photo edits, but have used Picnik to get rounded corners and text and a few filters I like.
I have found a user-friendly replacement for Picnik called Picmonkey. Yes, the name is hokey, and there are silly little messages that pop up to guide you, which is very similar to Picnik's goofiness. Apparently, they are made by the same people.
Here's a screen shot of the photo editing I was doing recently for the Project 52*
You can see that the navigation menu is similar to Picnik, and I think its actually more intuitive. I also find it FASTER.
The only negative aspect I notice so far is that its not synced to Picasa or Google, so I have to do an extra step occasionally when it comes to sharing the photos or organizing them.
Its a good deal, however, since its free, and I would really recommend you check it out if you do photos in your blog and you don't do fancy photo-editing software.
*I'm still 52ing it, and still doing it in the correct order. I just haven't posted them lately because I wanted to have them edited just so. Perfection is my enemy of getting things done. I'll do a bonanza of the week photos this soon since I am nearly caught up!