I used photoshop for years as my main image processing tool, but jumped on to the Lightroom bandwagon right at the start. I still have Photoshop for when I need it, but other than for stitching together panoramas, I rarely use it - in fact not sure I'll upgrade from CS 5 to 6 when it comes out.
Lightroom is more than adequate for 99% of my workflow needs; actually it's probably capable of doing a lot more than I need it to. To get an idea of its capabilities, check out the video tutorials by Julieanne Kost and download the demo version.
its horses for courses 99% of the time i use lightroom 3 to edit pics, great for adjusting white balance , cropping, converting into black and white etc etc but for some things you do need photoshop
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