Currently the input only allows you to post a link to an image, but if you have one saved somewhere it's an annoying extra step to have to go to another site and upload one, possibly having to sign up as well.
It would be extremely useful to be able to select an image from my computer while writing up a post (or even just drag and drop it!) and have it [url=http://api.imgur.com/]automatically uploaded[/url] and placed into the post.
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Edited by Seven: 1/15/2013 1:18:30 AMI just take screenshots of my pictures with speedcap.net anyway.