Photoshop is a mostly raster program, meant for image manipulation.

Illustrator is a vector program, meant for illustration graphics.

Vector graphics will look sharp at any resolution from a business card to a billboard to a ten-story building installation.

Raster, or bitmap, graphics have a finite resolution. They can only be enlarged so much before they pixellate and become fuzzy.

Logos should always be developed in Illustrator.

I use Illustrator for executing logos, but not before I brainstorm and work out concepts with pencil and paper.

This!!

I'm pretty sure everyone is going to say the same thing here, and if they don't, they shouldn't be designing.

I know this because I failed this once upon a time.

I began teaching myself photoshop about 13 years ago, maybe 14 years ago, so I was sure I was a 'graphic designer' because I knew how to put font on the screen and maybe a little clipart. Oh boy! did I learn a hell of a lot since then!

One of my biggest learning curves was going from photoshop to illy, the same buttons, same screen but nothing seemed to be working the same.

It's been a long time since I thought photoshop was ideal for logos, I now use illustrator for logos and most other marketing type images. Photoshop is still my baby as I do prefer work with 'photos'.

I'm no pro when it comes to illustrator (as most of my work as actually involved photos) but I certainly know my way around enough to produce much better looking logos than what I was trying to pass off in 2001. lol

If you are doing Artwork, then whatever program you want to create the artwork in works as long as it is proper size and resolution.

Artwork is not Graphic design.

General guideline for programs as used in Graphic Design.

Photoshop = raster program. Good for photos, image manipulations or anything that doesn't require the image to be scalable.

Illustrator = Vector program. Good for logos, branding, scalable illustrations or artwork, one page layouts is ok.

InDesign = Layout program. Good for combining many types of elements such as raster images, vector images, text, data sets into one document. Used for page layout, magazines, catalogs, reports, signs, and well just about anything printable.

CorelDraw = Known more so in the sign world. It is a vector program similar to illustrator, but also has some elements like InDesign.

CorelPaint = Their version of a raster program similar to Photoshop, but with much simpler tools.

CorelPaintShopPro = Cheap raster program, but it does have a couple clean up functions far superior to Photoshop. Which I use to "unpixilate" photos or raster images.

Graphic design is 20% knowing the program and 80% knowing the practical theories and print knowledge behind the actual design.

Different programs for different tasks

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I have no problem with Photoshop being used for things that are being scaled.
As long as the designer understands the resolution math involved.