I guess it comes down to the question: Do you need to do the things Elements can't do?
Do you edit in 16 bits/channel and use layers? Elements can't do that.
Do you enjoy tweaking the more esoteric controls in Camera Raw? They're limited in Elements.
Perhaps the best thing would be for you to download the Photoshop Elements trial and see if it suits you.
Noel, Thanks very much for your reply. I have already, actually, done as you suggest and tried out PE11. I'd make the following comments:
1. I certainly do use layers in CS2. However, PE11 DOES support layers - not with quite the same interface as CS2 - but certainly supporting anything I've ever used layers for.
2. I do also process camera raw (Canon 5D) - but PE11 seems to me to have MORE options than CS2. (Possibly not as much as CS6). This is almost the only thing that seems to me to be better in PE11 than CS2.
3. As far as I can see, the editing functions in PE11 seem to me to be very similar to CS2. This is quite surprising to me - CS2 is so old now that I would have expected new super-dooper functions in a modern product like PE11. It does occur to me that they may have improved significantly under the covers. I have not really been able to make a detailed enough comparison. If you know of cases where PE11's editing functionality is superior to CS2's (not CS6's), I would be very interested to hear it.
If the editing functionality is very comparable, then my preliminary conclusion is that I should stick with CS2 and that there is not much point in moving to PE11.
Elements supports layers, yes, but NOT if you're editing in 16 bits/channel mode.
You'd find Photoshop CS6 very similar in function to Photoshop CS2 - even more so than Elements. When it works it works and it's best not to change it.
And there ARE a few "gee whiz" features in Elements 11 that Photoshop CS2 didn't have... I think Content Aware Fill is in there, for example.
I would add the creation (not just editing) of Layer Sets, and also CMYK support to that list.
With newer Camera RAW files, one will be limited in the version of ACR (do not have the last version that worked with PS CS 2), and being able to use newer versions of ACR in PSE will be a big plus - if one has any camera newer than the last ACR version for PS CS 2.
That is a very valid point, and one that needs consideration.
I have not looked closely at PSE 11, but does it have Adjustment Layers yet? For me, that would be a real biggie (along with the creation of Layer Sets, which I use in Adobe Encore Menus constantly)? How about Layer Masks?
If those functions have not yet made their way into PSE 11, then I would look to keeping PS CS 2, and adding LightRoom for the Camera RAW support.