http://img382.imageshack.us/img382/9316/gmailaa3.png

Not new... I have this since the new version of Gmail.
Would be great if the toolbar has a image option! ;D

If you use Firefox, go to compose in GMail, then go to a website with images, drag any image from there, keep dragging and hover the GMail tab. Then drop the imagen into the mail body area, and there you are!
It's not perfect, but it does the trick :)