The site looks very nice, and it's an impressive effort by a one-man shop. I hope he can get to a break-even point on his Heroku and AWS bills soon (if he's not there already).

This seems like a hard space in which to compete. Flickr, SmugMug, MobileMe, and Picasa are all well known and accepted. picsengine doesn't have to offer more features than those services, but it does have to offer something different. I like having my desktop photo app serve as my master repository and having my online gallery reflect a subset of my whole collection. I'm sure there are others who would like to manage everything "in the cloud," though.

Here's wishing the developer the best of luck.

(It also looks like Heroku is unable to launch the demo site right now.)