What are your needs?
If you just want to post images here, the current system isn't too bad. There's a little trick to it that you can use though.
Consider this photo:
Here's how it was done. Click the "Go Advanced" and click on the paperclip (you already know this, but..) This let's you attach the photo to the post.
Then, you can do this. In the "Message Attachments" window, you'll see a link to the image under "Current Attachments". Right click on that link, and Copy Link using your browser. Then put the cursor where you want the image in your post (like above), then click the little picture icon "Insert Image".
Then paste in the link from before.
Now click "Preview Post" at the bottom, and shazam you have a nice larger view of your attached photo, inline with your message.
If you just upload the photo, and then Preview Message, you can also copy the link from the thumbnail at the bottom, that works also (that's what I typically do).
It works for most purposes, the image is here on the forum, so in 5 years when your imgur account expires, they don't go away.
Obviously if you have other needs for sharing, then something else would be more appropriate. But if you're just looking for something a little better here, then this can work.
Some day we'll be getting better forum software which will be even better for images.
