I remember hearing a rumor a long time ago on ThinkSecret that Apple was developing iPicture, a competitor for Photoshop Elements. What ever happened to that? Will Apple attack the photo editing market any time soon? They've already done the movie and music markets...
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One possibility that could rearrange that thinking would be if iPhoto was a software "gateway" to a new Apple iDevice much like iTunes serves as the gateway between your Mac and your iPod. Apple wants to be in the gadget business and if they did have an "iCamera" it would go stale very quickly if they delayed the launch of the device (hence the accompanying software) to humor Adobe.