Lightroom is DAM and RAW conversion software with some tools for editing but nowhere near as many as PS or PSE. It has got a crop function, spot healing, local adjustment tool via a brush etc. You've got your curves, sharpening, noise reduction but not quite with the control you have in PS. It also can't do layers. It all depends how much editing you tend to do; for some it is has more than enough features, for others it hasn't and they like to further edit in PS.
It is a stand alone product but you can export your photos straight from Lightroom into PS. Lightroom uses the same ACR as PS but IMO it is better laid out and so is easier to use than ACR in PS.
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