Picasa is more than just a web service, it's great for fixing images (with minimal effort) and searching local collections of photos via face recognition.
I agree Picasa for Linux (Wine or No Wine) was great for some quick picture manipulation. I was well connected to Picasa Web. Picasa is being slipped into G+.
I suspect Google might be working on a better webapp. A lot of picasa style picture editing can now be done in G+ while you post picture. Google has to bring something out for Chrome OS.
