Adobe Photoshop Elements
A newer version of Adobe Photoshop Elements is available.
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Full user review
"Perfect for my needs"
Ease of use
Breadth of capabilties
Integration with iPhoto
Lack of price integrity/having to hunt around to find the best deal.
I tried a lot of the other free-to-modestly priced digital editors - GIMP, Pixelmator, etc. - and all of them, while good, had various challenges, many of which involved ease of use issues. While the list price for Photoshop Elements is higher than all these other ones, you can almost certainly get it for a lot less (probably less than $60 - I got mine for about $35 after a $20 upgrade rebate). Photoshop does more than all these other programs with a better interface, much greater ease of use and great integration with iPhoto.