I am a professional photographer, and, though I came to this page planning on buying PS-8/CS I just bought PS-7 instead ( I am currently using PS-6.5). Having used PS since V2 I have found that getting every other upgrade has been the most satisfactory way to go. Until V4 the real strength and utility of PS was in its ability to make excellent color separations (for ultimate printing on a press). It has never been a state of the art image editor, and until V4, was not even a decent one.
PS-6 was the first version I was happy with both for editing, and for pre-press. PS-7 did not add much, so was going to skip it for PS-8.
Instead of PS-8 we get PS-CS which has valuable new tools in it (I wanted it for the "patch tool" alone!), but which has more problems than new features.
As do many of the other commenters, I do not like software activation. Computers are fragile, MS-Windows even more so - but, unfortunately - the only new, fast, and affordable programs are written for Windows. So, if you are counting on a Windows system, you better have a backup system (or two). I have four computers that I am actively using at the moment (3 desktops and a portable) - but, as I only use one at a time, I certainly do not feel that I am violating any of my software licenses by having a program installed on all four (though, with PS, I actually have different versions installed on each of the computers).
I also do not like WinXP (It was recently installed at my office). Of my personal computers one runs W2K, two W98, and one Linux/Lindows. Software written for any WinVer except for XP will run on Lindows (albeit more slowly) and it is ever so much more stable - Though W2K/NT3("5") - is actually quite good. My feeling is that is one of the main reasons the new versions of Adobe products are written to XP (yes, I do think there is a close relationship between Adobe & MS).
But. Having said all that, I would have bought XP just so that I could run PS-CS except for the deal breaker: Plug-In incompatibility.
Years ago I was trying to decide which 35mm camera system to go with. I had pretty well decided on Canon when they announced what was to be their THIRD lens mount system in 8 years: the old lenses would not work (or would not autofocus) on the new system. So, I went with Nikon - virtually any Nikkor lens made will work with the newest Nikon camera. When you've spent tens of thousands of dollars on lenses, the cost of a camera body is insignificant: you just want some assurance that you can use your existing lenses!!
Likewise with Plug-Ins. I have spent thousands of dollars on PS Plug-Ins. Why? Well, some make repetitive actions (such as repairing damaged jpgs, creased photos) quick and easy; others do things that are very difficult or impossible to do by "hand" (converting an image to only black and white - not the greyscale of B&W photos - with an acceptable loss of image quality); some are just fun (like adding crepuscular rays of light, or mist).
So. To "upgrade" to PS-CS would mean 1) a new OS (with all the attendant driver problems and incompatibilities, and weeks spent getting the system stabilized and working again); 2) at least $2000 to replace my existing Plug-Ins (IF they still exist).
Not a good deal for me, I can afford neither the time nor the money. So I bought a used PS-7 from a (poorly rated) Amazon Partner instead. I know it will be my last PS update ever - unless Adobe has an interest in retaining old customers ...