Nooooo!!! I'm so sad to hear this! Yesterday I received an email saying that Picnik is closing down on April 19th 2012:(
Okay I know that the site is moving to google+ or something and that there are other editing sites...but still, that's not the point! I use picnik to edit my photos for cover art. It's like, the greatest thing in the world. One of my friends told me other places to go. I haven't heard of any of them, but I'm going to give them a try. After all, I don't think I have too much of a choice.
Until April I will continuing using my picnik