As for the cheaper Photoshop bundles, can the professional things like cloning (from the original post with the maxpc link) still be done?
Speaking only for Adobe Photoshop Elements 8.0: Editing wise, I've not seen anything in Photoshop (CS5) that's not in Elements 8.0, outside of the previously mentioned RAW file handling capabilities. Functionally, it's a bit slower than Photoshop & doesn't handle large batches of photos (500MB+) as well as it's bigger brother.
Still, IMO, Elements will work for anyone who is not getting paid
for their photographic works, especially when you can get it for $50 http://www.newegg.com/Product/Product.a ... 6832505198
or bundled with Premiere Elements for $75 http://www.newegg.com/Product/Product.a ... 6832505197
If you miss the current sale & decide it's the best one for what you want, don't worry, a birdy tells me that they'll be on sale again (at or near current price) before Christmas, & that birdy has been right about 85% of the time in the past.
I'm checking out the 30-day trail Photoshop Elements 11 / Premiere Elements 11 bundle now to see if there is a reason for me to upgrade, though I just downloaded it last night, so haven't done anything except install it & look at the interface.
EDIT: Here's my galleries http://chaosdsm.smugmug.com
though most of my editing is just fixing my errors, the majority of any photo editing has been done with Photoshop Elements 2.0 & more recently with 8.0.
Here's one of the projects I worked on with Photoshop Elements 2.0