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I don't really consider PI a step down from Photoshop 7, I've used both, and much prefer PI. Photoshop tends to make even simple tasks more tedious in my opinion, and though I do use it occasionally, I find that I can do everything I need to do in PI...and it costs so much less to keep it upgraded!
There are also tons of benefits, PI has great presets, it's easy to make your own custom shapes, textures, paths, and overlays. It creates everything on it's own layer, so eliminates quite a few of the steps involved in creating elements in Photoshop, and I find the filters and effects much more user-friendly. So for me, it's not a step down, it's just a step in a different direction than most digital scrappers choose to take.
BTW, I'm using PI 10 and haven't had any of these kinds of problems.
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