They clearly stated in the keynote that Adobe is working on a retina version of Photoshop.
It can if you set the global resolution to 2880x1800, but because most UI elements are likely bitmapped it'll be unusable: a 30px button will remain 30px, but will be a quarter the physical surface.
According to the article, you can only set a maximum resolution of 1920 x 1200 within the UI and it resamples that up.
As a GUI, it renders as it always did in Retina resolution, i.e it is not shows it's buttons and labels any more detailed, or any smaller. This is how every non-Retina ready app behaves.
That doesn't affect how big an image it can edit at all.
So, what "horror and dismay"?