Wow! Amazing! So what's the real alternative to online image editing for the mass? Of course there are Pixlr, Sumopaint, Aviary, Photoshop Express, but each targets a somewhat different audience than Picnik. I know the fact that Picnik is Flash-based is inconsistent with Google's strategy, and that with Flash going nowhere, Picnik is unlikely to help Google anywhere. But still... there are tons of moms and pops who use Picnik.
Question: Is there room for a new Picnik?
Edit: hmm, the Google+ version of Picnik (scaled down) is still Flash-based. So this is most likely part of the "Drive Traffic to Google+ At All Cost!" strategy.