Google To Offer Picasa Web Albums?

Philipp Lenssen reports that he found signs of a "Picasa Web Albums" feature coming to Picasa. Picasa is Google's desktop based photo management software, that they bought back in July 2004. Philipp has screen captures of a button that was visible on the Picasa homepage that read, "New! Picasa Web Albums." The button has now been removed but it did link to a dead page at picasaweb.google.com. Should we expect a Web based version of Picasa soon? I suspect so, especially with the release of all these other Web applications from Google.