I really am leaning toward the Cloud plus Captivate. I realize I will lose the round-tripping, but I actually didn't get too dependent on it. I realize I can put Illustrator objects in to Photoshop and then put Photoshop objects in to Captivate but it was a hastle. In the past, I was the entire development department for most of our project materials, so updates coming in from Photoshop files wasn't a big deal since I was the artist as well as the Captivate builder. I am working to change that and get Captivate into the hands of the other homeschool moms that are making courses though. The subscription model has been the key to that. Typically, a mom that wants to offer a course to other homeschool families is only going to be building that course for the summer and then some during the school year that first year of teaching it. The eLearning Suite or even just Captivate by itself was too expensive for us to provide a full boxed copy for such a short term use, I I would try to provide the graphics and the build as much as I had time for since I had the software and background as an artist. Since I build, admin, teach, and play secretary, I have always lived with being spread very thin to try to get everything done. With the subscription model, the moms that would have had to ask me to make their graphics and build can now get their own subscription provided by the project for the time they are building. Some moms find the learning curve too steep and will not take the offer and I still help those, but we have a handful that have taken the offer and have become busy independent builders. Once their course is built and they no longer need the tools for building, the subscription is cancelled and we can turn the funds to the next mom that is building her course. My guess is that there will be some that will fall in love with the tools and even keep their own subscription going for building the resources they want to use in their own family's homeschooling. That is how I started out: the kids and I built materials for our own learning projects. I never liked textbooks for pre-high school. We always learned by researching, hands-on, real world, and creating learning products as our 'proof of learning'. Why let the curriculum makers have all the fun? lol
The next phase of our project, once we get creative moms the tools, is to expand it to offer classes based on the subscriptions for the kids and move from them consuming the curriculum to them making their own like my own family has done it for so many years. This is all possible because of the subscription model. No one would be able to afford to get their feet wet otherwise. In this future goal, I se ethe Cloud as being the key. We will have kids from all cretaive bents to be working with: artistic (art, animators, photographers), musical, dramatic, writers, etc. The Cloud makes sense for that future because it is a one stop place to serve all their needs for creating. Captivate might never be a part of the Cloud, but that is OK. We will provide Captivate at least to the instructors. It would be more ideal though if it were part of what the kids would have in their own hands in the Cloud option. It would be ideal for them to pull all their creative leanings together in to as a core way to present their final 'gallery of learning' as they use it as a vehicle to teach others. InDesign tools and web site building tools will do well too though. I like the direction Muse is heading for furure use with the students as their portfolio core. For the more tech savy students, Dreamweaver. The key is that they are both right there in the same suite which simplifies things immensely. The subscription model makes the whole idea work because the initial start up costs for each family is less and families can stop the subscriptoin when the classes are done so we can get the momentum going for the whole idea to work. It will take years yet, but that is where I want to go. It worked great in my family. I think it can work great in a larger-scale project too.
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I use Illustrator every day as my favorite graphic aplication and Captivate 6 too - both for elearning projects. Sory, Rod, but Inskcape is sh...t, never can named as ,,clone of Illustrator" 
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