Ahhh thought i did try that but clearly not or i got something wrong because that does work.
@Angel_Crawford_ftw If you dont mind, how about aligning (left, centre or right) or setting the size? Sometimes the source image is not exactly the size i want
Ah! I was really tired and didn't even read the rest of your questions.
I think, there is only one advantage of using the local Image over the Copy/Paste, and that's space. If you use a sync target like Dropbox at example, and you only have 500MB of space there, then use the local image path. But I use Joplin like over 2 Years now, and have 10GB Sync Space and a good bunch of notes with images. And I didn't even get near the 10 GB (400MB actually). And I use a lot of images with Copy/Paste! So a lot of images are double on my PC. One time in my Joplin storage and one time on my drive elsewhere.
There is one BIG downside on the local path. If you want to use a sync target in the future! If you want to sync your notes to another PC or to our phone. Then the image isn't viewable, because it's only a path and the image is lying on one PC only. I use Joplin for work, too. Have Joplin on my work laptop and my private PC.
And: Images that are too big, get resized by Joplin automatically
If you want to size or align a image, you have to use CSS. But there is a simple "hack" for this.
For example, add this CSS to your userstyle.css: