yes, you can design logos with photoshop. its an arts program, you can do anything remotely artsy with it... for me, photoshop is the best for designing anything, from websites to posters to logos to print media. period.
Thanks for designing logos in raster format. That's why I keep getting clients asking me for the professional vectorizing of their bitmap logos
One more voice for the cry of Vector. I have never had the stomach to pony up for Illustrator for the rare times I do graphic work. So I use Inkscape or a Corel Draw with mixed results. You can get Corel cheap with a student discount. Still wondering if I should pay up for Illustrator, is it worth the $$$$$$$$$?
why pay for illustrator. Inkscape is free. Illustrator $600.00 Corel Draw $429.00 Xara Xtreme Pro $249.00 Real Draw Pro $55.00 They all do vector and they all have different tools and options. Corel and Xara are close to Illustrator, as far as what you can do. I have used xtreme for years. As far as designing logos you could make the same design with any of the software listed above and get a vector format from all of them. So it just depends how many bells and whistles you want to pay for or how much money can you afford to spend.
I also use Inkscape and Gimp. They are efficient and free. If you want to see how Inkscape looks like, visit codervods.com/VideoPage.aspx?ID=1179&&category=CSS