Thank you for your thoughts, Steven. We are not sure we will jump into image editing, even as simple as the one you have described. Image editing is a vast world and once we are in, the features that will be requested will be more than we can handle :)
On a similar note, we plan to offer a "customizer" for the standard controls which come with VS2005. basically, we plan to extend our Visual Style Builder to be able to style standard controls. If all goes well, we will have this feature in the Q2 release. We will check/research whether we will be able to offer some editing capabilities for the PictureBox, but chances for this to happen are slim.
All the best,
the Telerik team