Testing alternative editor.
This one automatically inserts URLs, which is nice (no need to click the "link" buttons in the menu.)
However, it still inserts images at the beginning of posts, rather than where the cursor is located at the time. I assume this is by design, since inserting at a random point could potentially cause errors in the HTML code and break the entire site layout.
The best solution is to insert the image and just drage/drop, using the mouse, so that it appears where you want it to be. I'm not sure there is another choice.