The Insert... menu is above the entry box on the Update Journal. The first (and only) option is Image, which produces a dialog with three options:
The first and only option is only visible when the Update Journal page is on HTML mode. When the Update Journal page is on Rich Text Mode, there are many more options available (and image is not the only option here). Because this page can now be switched dynamically, it might be better to expand this paragraph.
"When viewing the Update Journal page in HTML mode, the Insert... menu appears above the entry box. The only icon on the toolbar allows you to insert an image, which produces a dialog with three options:"
"When viewing the Update Journal page in Rich Text mode, the Insert... menu appears above the entry box. The Insert Image icon appears in the middle of the toolbar as a small landscape icon, which opens a dialog with three different methods."
I'm not the best at technical writing, and I could be way off base here... but this seems to be a relevant issue to at least discuss. :-)