It is now possible for users to edit images in place (including flipping, rotating, and adjusting brightness, sharpness, and color), edit the image description, and edit the size of the image. Note the ability to do this is currently limited to discussion posts, announcements, and content.
Figure: Advanced image editing screen in the HTML Editor
Figure: Image editing provides the ability to customize image description and sizing
Figure: Manually resize the image in the image editor