When the GUI editor is enabled there won’t be a ‘Insert image’ button below the post, you can use the image icon. This one:
Also, you can paste an image from your clipboard into the body field and it’ll be automatically uploaded and the markdown for the image inserted into the field.
Excellent! And I take it that you just recently added a 50mb total cap per user content?
Yes. It’s a pretty low cap, once I have a bit of data on how much people use this I’ll be able to estimate the cost to provide it and probably increase it.