Placing layered Photoshop files in Illustrator.

[Bagman500]

Adobe needs to simplify the placing of layered Photoshop files into Illustrator.  You should be able to simply place a PSD file  in Illustrator file and have the layer settings automatically apply just like the do in Photoshop.  If a layer is "Normal or Myltiply" it should appear that way without having to convert layers to objects.  That way you can simply make adjustments to an image in Photoshop. Then you could also link the files instead of having them imbedded.

[Monika Gause]

Just don't embed them.

Then you can continue editing in Photoshop.

[JonathanArias]

well..... illustrator is not a layout program. that is the point on indesign. place your .psd and .ai file into indesign.