Not photoshopped (at least not Michael--though it does look like they shopped the girl's eyes to be more blue--and that is the only evidence of photoshopping that I see), according to the person who posted the photo on June 26, 2009 at the Democratic Underground discussion board:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x5929423
"My daughter was at her friend's house when her friend's mom noticed a small crowd outside in the alley (they live behind a rehearsal studio). Michael was letting kids take their picture with him sitting in the back of his SUV.
He didn't say anything but my daughter says he smelled nice. He was my age."