Im using the 'free' cs2 (i agree it's a conscience thing.. so im going to hell) - the subscription model they now have really bugs me as sometimes i dont use it for a few months or something and i dont like committing to constant use (like my aversion to gym memberships!) - that said, i suspect when i get a new computer sometime in the next year or so (mine is circa 2007), this 'free' version won't work on newer versions of windows so i'll have to rethink. I suspect I will probably switch to Elements - i doubt i'm using photoshop to it's full potential and as long as elements has the basic functions like cloning and levels and blah blah i would think it would be a fine alternative.
I'll hold up my hand and also admit to using a "free" copy of CS2, but in mitigation, I've subsequently upgraded to the full, paid for, CS6.
I'm not sure about CS2 not working on later editions of Windows.
Reading the system requirements for CS2 Adobe say "Windows® 2000/Windows XP" and yet it runs fine on W7 64-bit.
Not sure about W8 since I don't have that, besides which, Microsoft have included an "Emulation" mode in recent releases of Windows, which is intended to allow running programs in an earlier operating system environment.
I'm sure the majority of people don't use PS to it's full extent, and I include myself in that group, but nevertheless, it's nice to have it's power there if you need it.
If there's a particular technique you want to try you can usually find a tutorial on how to do it.
As I said in an earlier post, I prefer to work with 16-bit images wherever possible, and Elements lack of 16-bit support makes it a non-starter for me.
For many years I was using PaintShop Pro, which has much better 16-bit image support, and IMHO is a far better program than PS Elements. It's just that Photoshop CS6 is even better.
I use Lightroom to PP my photos, with a bit of photoshop (if theres a big clone area or something) - I don't think i use the work flow elements of it very well, but the controls I find easier to work with than doing some of the same things in photoshop. I really hope lightroom will always be available as a stand alone program.
Sounds pretty similar to myself.
The majority my of work is done in Lightroom, although I have NIK and Topaz plug-ins that I also use sometimes, but there are times when Photoshop is of great benefit.
Adobe seem to be making it increasingly difficult to find Lightroom as a stand-alone program, and if were ever to go CC only I would seriously consider changing to something else, which at the moment would probably be Capture One.