The GIMP 

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How can you possibly make web sites without Ph*t*sh*p?

Don't be silly. Said software package is by far not the only one suitable for serious, nay professional, work. For bitmap graphic design and editing, I use the GIMP. I've been using it and following its progress since the very beginning. Since version 1.0, the GIMP is brilliant for serious work.

It runs scripts, too. You can use Script-Fu to automate the generation of entire website-loads of bitmaps. A few short scripts generate all thumbnails for The Machine Room.

And, yes, it can also do video (a special case of which is animated GIFs, if you like that sort of thing); multi-level undo/redo; sub-pixel addressing; alpha (and other) channels; layers; operation over the network (Web-Fu); and hundreds of plugins ranging from the mundane to the outright surreal. The GIMP also runs under Windows and MacOS, and you can't beat the price.