Issue #1: Currently you can paste or drag-and-drop images directly into Text Blocks and this is not being handled properly.
Right now, it is base64 encoding the images, which makes the content data extremely large.
Issue#2: After adding the images to the text blocks, there are no settings/controls for those images to make them responsive or adjust width. The only control is to manually resize them by clicking on the corners of the image.
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Proposal
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Ideally the system will handle this and make use of the same upload settings as the image blocks. This way the image will be uploaded and have a URL as the image src instead of base64 encoded as part of the content.
This is an option in other editors like TinyMCE to properly handle adding images into the content.
When clicking on an image that has been added, the image should also have controls similar to the controls the image block has.
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Temporary Solution
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As a work-around for now, I have tried enabling clean paste to keep users from pasting images, but this still doesn't stop from drag-and-dropping the images into the text blocks.
Also, I understand that it might be best for users to add image blocks and handle all images with those, but if that's the case we need a way to block users from being able to add images to text blocks. We must protect them from themselves in this case.