That would be a gadget, I believe (possibly combined with a robot). I'm not sure whether photo editing would really be a practical application of Wave, although a "collaborative canvas" certainly works.
The gadget would be used for the user interface side of things, and the robot could be used for more complex effects that you didn't want to implement in JavaScript. You'd add a bit of data representing "I want posterisation applied" (for example) and the robot would see that, apply the effect and then send back the modified blip with the posterised version.
The main problem I'd see with collaborative photo editing is the amount of potentially changed data for each edit. I suspect it would technically work, but it may not be great in terms of space/bandwidth usage...