In 2010, Google acquired a company called Picnic. Picnic was well on its way to becoming a Photoshop that ran in the browser. Instead of providing awesome online photo editing for Google users, Google shut the service down in April, 2012. Perhaps because they were threatening one of their biggest Adwords advertisers by offering a competing product for free?
The product has since risen from the ashes under another name. If you're looking for an image editor that's more powerful than