Recently, using the image uploader in the post editor has starting stripping preceding line breaks; placing the image directly after any previous text instead of at the current cursor position. This means that the inserted image is placed inline as part of the previous line of text rather than in a new paragraph as it did previously...
Before inserting the image (note the cursor position):
After inserting the image:
This also happens after the Markdown for a horizontal rule, which destroys the rule and gives us a bunch of hyphens followed by an image instead:
Seems the behaviour is a bit inconsistent... Sometimes I get the behaviour shown above and sometimes it leaves a single newline, I'm not sure when or why but single line breaks are ignored in Markdown so the rendered result is the same regardless.
Obviously it's useful to be able to have inline images, but I'm pretty certain most images aren't intended to (and shouldn't) be.