Yes! Gmail Adds Embedded Images
About a month ago, Google added a long-awaited feature to Gmail: drag-and-drop file attachments. Yesterday, the feature got a little better: now you can embed images in Gmail messages just by dragging them there.
As you may recall, a similar option was previously available via Google Labs. However, it was a little more involved: you had to "upload" the image from your PC or insert a URL.
Now you just drag an image right into the body of your new message. According to the Official Gmail Blog, you then have the option of resizing the image as well -- but this didn't work for me. I could drop in images, but I couldn't make any changes to them after that.
What's more, for the moment the feature works only in Google Chrome. (Nepotism alert!) Fortunately Google says it's "coming soon" to other browsers. I hope so, as this is something else Gmail should have had loooong ago.