Which editor are you using? On my site, I use CKEditor with a stripped down toolbar that only has very essential functions. I think that image insertion functionality provided by CKEditor is a bit simpler than the default provider's.
We have talked about adding a simplified interface for image insertion, but it's not done yet. There is a person on GitHub who has put together a module that allows easy image upload/insertion. I'm not sure what the state of it is, but here's a link to the item: https://github.com/jbrunken/ActiveF.../issues/35