Photoshop to be online! What next?

This is a pre-holi news, and a big one. If blogospher is to be believed then( as I haven't found a direct Adobe link till yet) Adobe would be launching online Photoshop it any time in coming six months. This would surely be a toned down version, and might be very much like what is already available. When it comes to desktop photo editing Photoshop is a market leader, and it is quite clear that they want to use their name in online world. They would be taking on Google who is a currently a online app king. But I think Zoho is also doing more than few correct things. But when it comes to photo editing I think an online version would serve two purposes, first it would bring them some revenue through advertisements and second this will probably attract customers to buy their desktop software. You can find a free copy of Photoshop from place you surely know, and this is hitting Adobe in a nasty way. What I would love to see is some kind of point system which could later be in cashed as a discount for Photoshop. It just an idea, but I suppose it will encourage users to work more on online photoshop this will gradually add some more money in Adobe's pockets. Other good thing they can do is to bring up API for their online product very much like Google earth. This reason behind this ideas is my belief, ' more seen>more used>more revenue.' We all know what a simple community driven widget in sidebar of a blogger can do for a website. When people can use some app for free, they start feeling a kind of bond with that service provider, then it doesn't matter whether that company do some evil or not. And this love generates revenue, we all know it don't we?
If you want a following, and this one also go for bigwigs, then you must show a free friendly face on internet, your advertisements should not be to bright to make user feel that he is being used, and this will keep the relation friendly, for long time. This also brings us to one other big question, will Microsoft do something similar, are they ready to be a force in online world, who knows...
I think Adobe's Illustrator is also one good contender to be an online app. Will COREL jump to this online wagon?(Do you remember COREL?) One more thing which strikes to me, will some open source application also come in an online application form, who knows? GIMP may be next. With the rise of Flash and Flex as one of the preferred set as rich media generator, Adobe is really on steroids.
One thing leads to other, one thread leads to other, and scientists also say that this world is made up of strings. When we talk any thing online we some how also bring mobile devices in bigger equation. One can simply go on and think on using Photoshop on his iPhone! And other string lead us to one heated problem, What about small fishes who spent few caffeinated nights for developing online image, video editors?