What took them so long?
(Google Photos Blog) Okay -- on to photo editing. A new text tool lets you add text to your pictures, and lay it out exactly as you wish, at any transparency level. We have also created a new retouching brush to take care of unsightly blemishes, camera dust, damaged photos, and the like. The red-eye removal tool does a lot of its work automatically now -- there's no need to draw boxes around people's eyes. Our crop tool will also recommend interesting starting points to crop, based on faces and objects in your photos. (As you might've guessed, we're using some of the technology from our name tags feature in Picasa Web Albums to make Picasa 3 smarter, which means less work for you.)
Note: Emphasis mine.
The inability to post text upon images is what drove me into the arms of Paint.NET, which is currently being developed by one lone person.
While this feature will help me take a second look at Picasa (or at least the beta), I will probably cling to Paint.NET for awhile--at least until they release a Mac version (as I plan on purchasing the rumored Mac tablet that is suppose to come out later this year).