The new terms go into effect April 10, 2008. Adobe has cleared up the section regarding use of your photos considerably. They now explicitly state that the licensing rights are “solely for the purposes of operating the Service and enabling your use of the Service” and that you can terminate the agreement “by making [your content] no longer shared. You may terminate the remainder of Adobe’s rights by removing Your Content from the Service.”
This will appease many but I have a feeling there will be a vocal minority who will not think Adobe has taken it far enough. The first version of the license was a misstep that may cause many people to scrutinize Adobe’s licenses much more carefully in the future.
Related: Review of Photoshop Express