The open source community finally has some very slick and full-featured solutions for content management, photo galleries and rich text editing: drupal 4.7 + gallery 2.1 + tinymce 2.0 + g2image 2.0 = pretty f4cking cool.

It is a lot of php and js files to deal with and keep up to date though, particularly if you're admining a large number of different sites. :/

On this site, to add a photo from the gallery into a blog entry, just click the "G2" icon in the toolbar and a popup helper appears. Of course you can also simply drag and drop images into the text area.