[codemonkey-zeta]

https://github.com/abo-abo/org-download

This is the package you're looking for. Just drag and drop images into the org mode buffer and you're done. I've been using it for years to take lecture / book notes in org mode where I have to constantly take screenshots and embed them in my notes.

[Avshalom]

that's part B.

part A is still annoying though. if you have inline images toggled and type in a new image it still turns into a link instead of an inline image.

[codemonkey-zeta]

That's an org mode setting, can be added to the #+startup declaration at the top of the file.