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The "hide" function works great for, well, hiding an application without it minimizing to the dock.
several ways to accompish this:
while the app window is open, move the mouse to anywhere else (don't click yet), especially over the desktop, press the option key, and click.
or, right click the dock icon and select hide
or, select hide from the application's drop down menu at the top.
I agree, I don't like the way iPhoto behaves, put keeping it open, but hidden, takes away some of my angst.
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