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Adobe says 'next update' so I'd say by next March or so most of their apps will have been carbonized.
Photoshop runs just fine under Classic - even when I had 128 megs installed it ran at least as fast as it did under 9. The only problems are an occasional screen redraw and palette placement issue. As for cost, list is something like $895, catalog price is around 5-600, upgrade price is around $200. You could get an old copy from ebay and upgrade and probably save $$ (make sure it's a legit full cd copy with manuals, box, etc. not just a CD-R!) Student discount price is probably around $200 as well.
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g4 400 AGP - 512 RAM
10GB internal (dumping ground) + 60GB (30 GB OSX partition/30 GB OSX Server partition) - 3GB external SCSI (OS9/and I think the Public Beta is still on there somewhere) - DVD-RAM - ZIP
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