I'm similarly disappointed in Picasa, but for slightly different reasons. Using the Mac version, I haven't noticed that particular memory leak bug, but I have been very disappointed in the infamous disappearing database problem when your collection is on a network drive. Basically, if your network share (mine is NFS) goes away for any reason, all of your folders disappear, and the next time you start it up, it has to rescan everything. It appears to have gotten better in recent versions, but I've still had my collection disappear a few times in the most recent release, even once when I'm certain my file server was up and the share was accessible.

I'm also disappointed that there's still no support for hierarchical albums, and the editing tools are pretty bare-bones. Yeah, it's free, and yes, it's still a very good program, but with Google's oomph behind it, I really thought it would improve faster than it has, especially given how so much of Facebook's appeal is the picture sharing. I'd think Google would be aggressively pursuing an integrated photo solution, but progress on the Picasa desktop applications has been about as fast as I remember it from the pre-Google days.