Picasa 3 is out in Beta today. What can it do that Picasa 2.7094732929872b can't? It can crop in a stupid 1:1 ratio finally. Was that so hard? Hello fake square format!
But it comes with this really cool blemish removal tool (retouch) which falls short of a closing tool but NOT BY MUCH. Will you be taking the heads off women and putting them on different bodies? No! (Why would you do that ANYWAY? Sickos!) But you CAN take a poorly positioned TtV black spot of the end of an otherwise lovely nose. See the previous post.
You can also make movies and slideshows to infuriate people who don't want them on flickr and make different collages.
And it's still free. So when it DOESN'T do something you like you can say you got what you paid for!