I still use 3.0... but from what I heard the jump from 2.0 to 3.0 was huge...
for example, do you have healing brush, and spot healing brush? Great help in retouching.
Can't comment TOO much about limitations of 2.0, since my first Photoshop product was 3.0.
Also, there are plug-ins and actions that will only work in 3.0 and above (I'm thinking the Earthbound light plugins that allow curves, etc.)
Also, I think upgrades to the organizer too.
If doing quite a bit of PP, I'd say $89 is a bargin... compared to the CS2 alternative. I'm not one who likes to make every upgrade either, but I'm seriously thinking about upgrade from 3.0 to 5.0.
5.0 has some nice B&W conversion tools built in. And a simplified Curves adjustments. (Which alot of people have been calling "dumbed-down", [me included]. But after looking at Lightroom, and seeing that they are using sliders to control the curves, I'm wondering if Elements control of curves isn't similar to what they're doing in Lightroom. I haven't played with it at all in 5.0...)
Does anyone out here have comments on the similarities/differences between Lightroom and Elements 5.0 control of Curves?)
I got 3.0 along with my Wacom Tablet for about $75 total.