I am not apposed to adding these features but they do present some security issues.
With the plugin as it is, images can be hosted elsewhere and linked into post using HTML.
This is how my organization uses this plugin.
I have taken into consideration that full editing features are in backend and authors there could upload.
The intent of my plugin was to allow administrator level authors to be able to delegate authoring to less capable individuals without complexities associated with things like image creation, sizing, cropping and uploading.