But through Gmail-Labs, now you can easily embed images in your emails (in between the content) just like you do it in MS Word documents or while writing your blog posts.
To enable this feature in your Gmail account, go to Gmail Labs, by clicking the green symbol at the top-right corner of the screen.
Then browse through all the new features of Gmail labs to find these two:
1. Inserting Images
2. Extra Emoji
Enable any/both of them, and simply click on the 'save button' present at the bottom of the page. You will be redirected to your inbox.
To check the new feature simply shoot a mail to me :)