Pixelmator
A newer version of Pixelmator is available.
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Full user review
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"Good Alternative to Photoshop"
Pros
Much less expensive than photoshop. Sufficient photo-editing software. Has most of the basic features. Fast and clean UI.
Cons
Crashes from time to time. Wish it could do vector art.
Summary
Pixelmator may not have everything that PhotoshopCS5 has, but it's still a great editing application, nonetheless. It has most of the essential features like layers, masks, paths, filter effects, etc. It's fast, simple, and has a clean user interface that is easy to navigate. It works best for small projects, but you may have a tougher time when it comes to large projects. Overall it's a pretty good alternative to Photoshop.