Hi Tronix0,
You are correct, as part of Photoshop.com shutting down in June we have disabled the account creation to Photoshop.com. This affects creating an account directly on Photoshop.com, as well as creating the account from within the Photoshop Elements 10 interface.
As you have already discovered, this log in is not necessary to use Photoshop Elements 10, just to be able to upload to Photoshop.com and share the photos which is a service no longer available.
More information on the transition of Photoshop.com to Revel can be found here:
forums.adobe.com/community/ps.com_sharing_and_storage
Hope this helps,
Regards,
Pete