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FormatPixel gives you desktop publishing capabilities online. Although you are much more limited compared to industry standards such as InDesign, FormatPixel gives you just enough control to design newsletters, leaflets etc.

Above is a screenshot of a quick layout I created in about 15 minutes. The negative aspects I can point out initially are the fact that images cannot have a larger resolution than 72dpi, and have to fit within various size limits. I am unsure whether this only applies to the free version, or also to the paid subscription packages. (In the free version you are limited to 1 project and 512k storage).
Nevertheless this could be a nice and handy tool for simple desktop publishing operations, and best of all another online application.

For an even more simple approach to designing online (news)letters I wrote about another solution in January: LetterPop! Create Your Newsletter Online.