For a professional, absolutely.
For the average user, maybe not.
I used elements on my Mother-In-Law's computer one time... for the average stuff it worked.
Elements is missing the following intermediate functions which I use in creating & correcting arcade related stuff all the time.
Curves, Channel Mixer, Color Balance, CMYK, channels, Vector Pen Tool, Action recording (for repetitive tasks) Layer Masks (A MUST HAVE), Text on a path
for web production; Image slicing
For some of those, there are workarounds, and plug-ins & effects people have created to "cheat"
For me the biggest loss is Layer Masks. I use them in almost every file I have with photoshop. Instead of erasing portions of an image, you can mask them out, and change the mask to suit, rather than having to keep pasting (or storing a backup image on another layer) the image in if you screw up, change your mind, etc. Not being able to use CMYK or LAB color spaces sucks, too.
From what I hear, though, people unfamiliar with either, are initially happier with elements (for the price and ease of use) and won't miss the high-end features.
I may be off on a few of my features... anybody else that has access to Elements might want to chime in.