I'm quite happy with the RAW converter in the Canon software for the 1D3. After Conversion I can quite easily use my current version of Photoshop - CS2.
Is there any value in upgrading to CS3 -- I'm beginning to find that as good as Photoshop is there are simply LOADS of features in it that I don't use or ever have any intention of using.
Having a "combined" product for "Graphic Art" and Photography rather complicates matters -- a separate program for both jobs would IMO be a much better idea with just a common library for tasks common to both sets of people.
I can't see myself abandoning photoshop but I wish a lot of product developers would stop just adding and adding "non essential features" and simply concentrate on "The Core Product".
Lightshop seems another possibility but I keep getting C++ run time error or cryptic measures like that when I try and run it.
I am waiting for delivery of CS3 but I do prefer lightroom for raw conversion. I would not have upgraded it as a single product but was updating a bundle. I was not convinced that there was enough new features I wanted in CS3 to warrant the upgrade.