I think Photoshop is an excellent tool. I agree with some that it should not be used to make a person look like someone they are not. Especially if they are claiming that the edited photo is the same as the actual person. Also, I see a lot of amateur photographers that photoshop too much, and it is blatantly obvious that they've retouched the photo, and done a poor job at that.
I use photoshop on a daily basis. I don't take photos for fashion, but in the interior design industry. It's great for me, because I'll just remove an outlet that is distracting, or take the reflection out of the mirror. It makes my job easier rather then arranging the perfect setting before taking my photos. Also, I find that even though I have a Canon, photoshop is very effective in helping to bring out the true colors of an item, or change the lighting.
I think its fabulous software, and when used properly can be a huge asset to the artist who is using it.