I think native image upload is in the roadmap...
Im not sure how viable it is in markup or for steemit particularly, but its also possible to for a site to interpret a long hex string as a pixelmap so that it displays like an image.
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Yeah I do know that can be quite data intensive. If I can figure out how to embed a bitchute video the fact that uses Web Torrent is potentially a step in the right direction as long as there are seeds.