Picasa Web

Google has now let you extend your Picasa online with Picasa Web Albums.
Its still in a 'TEST' mode and its invite only. Demo user account can be seen here
It gives you 250MB of free storage after which you need to pay. You need to update Picasa on your desktop too, but you can do that only after you get the invite. This gives a new button that interfaces to the web.
Does this mean that Hello is dead? I never really got comfortable with that anyway.
I doubt it will ever go against flickr. Though it has some community type sharing. Now if they full adopted Orkut, polished its interface and married it to Picasa Web Album with chat on the side it would be fun.