I believe that what most of us expect/hope for is to see the image inline with the text of the post.
The uploader window contains an illustration of a page with text flowed around a picture, and that’s what we intend- not just a clickable link to the file. Is that what WordPress intends to provide? If so, then our blogs are not doing it. Does WP only allow the insertion of a clickable link? If so, then the <caption> and <description> fields, etc. seem useless.
