Stumbled on how to embed a full-size jpeg or other image file directly into a post from a PC instead of displaying as a thumbnail. Since the upgrade, import from the internet as a URL works fine (just remove that pesky "Retrieve remote file and reference locally" checkmark), but I have lamented that I hadn't found a way to upload and insert a full-size file from my computer...until now:

Before clicking the Insert Image button, simply click the first button which is the "Switch Editor to WYSIWYG Mode" button. Position cursor where you wish image to appear in the post then proceed with Insert Image (upload from computer) option as normal.

poofa pic embed.JPG