<canvas> tag. It’s a combination of a simple-to-use interface with advanced and efficient image/canvas editing techniques. It is also completely library independent and can be safely used next to jQuery, YUI, Scriptaculous, MooTools, etc.
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CamanJS is very easy to extend with new filters and plugins, and it comes with a wide array of image editing functionality, which is only growing as the community makes more plugins. It has a powerful layering system, much like the one present in Photoshop and GIMP, that makes the sky the limit for your creativity.
The library can be extended with new plugins and filters where a detailed “how-to” exists on that subject.