This video exposing the "Photoshop Effect" (how photoshop is used to make models look more perfect than they really are) seems to be a thinly veiled excuse to put an attractive model in front of the camera and then photoshop her. That's good enough for me.
WARNING! SHOCKING!! DISTURBING!!!
Here you can see unphotoshopped stars.
I don't think that photoshop should be banned, but I do think that publications should make it very clear that the photos have been retouched, whether by a notice in the credits section ("photos retouched by so-and-so") or by a symbol or other indication on the photo itself. I like the latter option best, I think.
What I would love to see happen is for celebrities to say "I don't want photos of me retouched. This is how I look, and this is what I want the public to see." But I think that they believe they have a certain image to uphold, so I don't think anything like that will happen anytime soon.
As for the unphotoshopped stars; the stunt of using harsh and/or unflattering light and picking one goofy picture out of thousands is just as disingenuous and misleading. (Besides, LeAnn Rimes looked pretty good anyway.)
And photoshop is a great scapegoat for low self image in women and girls. I mean, it couldn't possibly be the way we treat women as a society and as individuals. Nah, blame it on some software.