From a user's point of view this is pretty confusing - when an image is clicked on/selected it should have handles indicating that the image is the thing currently selected - at the moment it just has a blinking caret next to the image (unable to capture the flashing caret)

See Jason Berry's blitz test page for screenshot:
https://extranet.atlassian.com/display/QA/2010-05-31+-+Confluence+-+3.3-beta1+-+Blitz+Test+Part+1+-+Editor+-+Jason+Berry+Findings