i think so too! i did a 25 page template/layout in photoshop - went to put it in book smart and it didtn't how i had it in photoshop! so annoying.
I think Blurb should make Photoshop templates for those of us who want to make our covers/spreads in Photoshop. Just a thought...
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They do have InDesign templates, which is the more appropriate tool for doing this. The issue is that the cover size needs to be computed based on the book type, the number of pages, the type of paper, etc. Maybe if they provided the formula for this, you could build your own template in Photoshop (or anything else for that matter).
Actually, there is such a tool. Here is the information you need to build the cover: http://www.blurb.com/make/pdf_to_book/booksize_calculator
Just enter the information about your book and it will give you precise measurements for your cover. If you don't know what this all means, enter the information requested in the page above and post here your book specifications. From there I can either guide you on building your own cover template or creating one for you.
I really think you should provide PSD template for all type books/cover. Who makes a cover in indesign?