Photoshop Express is currently in beta form and is free. I hope it stays free because it looks excellent. I can’t access it at the moment because it is only for USA residents, but here is what it says it offers:

You can use tools to crop, straighten, fix white balance and exposure, highlight, alter shadow levels, red-eye removal and sharpening. Why would one need Photoshop or Photoshop Elements?

The retouch tool is a bit like the healing brush tool in Photoshop. You can even turn a photo into a sketch.

After editing, you can store your photos on Adobe’s servers. You get 2GB of space. You get a URL like this: http://……………………. .photoshop.com