When Powerblogs started, it was tedious to insert images because you had to upload them, then copy over the name of the image. If you were ambitious, you'd also look up the width and height of the image and add them to the image tag.
The "Upload & Insert a Picture" tool improved the situation a lot because it combined the upload and the insertion into one, plus it harnessed the power of computers to do boring work to add the width and height attributes.
It was still tedious to insert the same image into multiple posts, though. While life was good for people who wanted to post pictures of some particular event, there was no good way to use images to signify some category, like a picture to categorize what you're talking about.
All that is finally at an end. There's now a tool to browse through the images which you've already uploaded and insert them! At long last, most anything you'll want to do with images is now easy. Enjoy!