Regarding photoshop for picture editing... is this for personal consumption or professional work? if it's the latter, be VERY careful about the LCD on the laptop you order. Most LCDs (laptop or otherwise) do some funky things with colors which are not conducive to photo editing.
I have little advice in the way of smaller... but for a more fully rounded laptop, i love my brand new HP HDX 16... 16" is perfect, not too big (17), not too small (15)... <3
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