Morph-Selection is a script that works similar to the Round Corner feature.
Click the icon above, and save it to you scripts folder. It can be located under the Selections menu.
The main use of the plugin is to make objects like this:
It also has some additional benefits I will cover on Page 2.
To use the script, you will need a layer with an alpha channel with some design on it.
The usual settings are 20 to 30 pixels on the blur. This basically is how much you want to distort the image.
The difference between Rounded Corners, and Morph-Selection is that you do not need to have any part selected, and it will return a mask that you can take a selection from.
Plus Rounded Corners always returns a rounded rectangle.
This before and after is just a couple of squares on the same layer.
And a couple circles here.