Turns out this was largely blown out of proportion by the internet at large and some poor wording on Adobe's website. This was available ONLY for people that already had CS2 and had lost their disc. They have sense backtracked, corrected themselves, and apologized.
OK it may not be the latest version and be the one from back in 2005, but it's FREE. Nothing wrong with that. I think this is a great strategy for Adobe. Get people used to using Photoshop and it is unlikely they will use anything else. Once they decide to upgrade, who else are they going to look at but who they are already familiar with.
Head here to pick up your free copy.