Some of the features:
Image resizing and cropping with drag and drop.
Support for PNG, GIF and JPEG images.
Image effects like grayscale and contrast.
Image transparency is kept
Language support (possible to add your own language file, currently translated to: Arabic, Brazilian portuguese, Bulgarian, Chinese, Danish, Dutch, English, French, German, Greek, Hebrew, Hungarian, Italian, Japanese, Latin american spanish, Norwegian, Polish, Portuguese, Russian, Serbian (latin), Slovak, Spanish and Swedish).
Every action it´s done with Ajax.
From version 2.0 image rotating and effects doesn´t require that GD is bundled with PHP. But then image rotating and effects will run much slower. So it´s still recommended to use the bundled version of GD.
I have now released a new version: PHP Image Editor Lite Joomla. It keeps transparency for both png and gif images. Maybe you whould consider a new rating now? :)
Message to the developer: Anyone that complains about this extension are just haters! Just like it's almost guaranteed that the sun is going to come up everyday, HATERS will HATE everyday. Great job and do not let any negative reviews bother you.