Scott Johnson asked me to expand on my Blog Inline Image Service idea so here is the result of a cup of coffee.  There are two parts to the idea:

1. Syndicated Images – Allow people and organizations to syndicate images along with associated title, link, and description.  RSS already has <image> tag used for channel image, so all we have to do is add an attribute to distinguish non-channel images and allow multiple <image> inside <channel>.  I would also add a child element for specifying suggested use (i.e. icon, blah, blah).
2. Blog Inline Image Service – Integrate blogging tools with web services that provide content-related images to be inlined into weblog posts.  The idea is to make it really easy for bloggers to add images to posts by searching image database with words and phrases extracted directly or indirectly (by association) from the post content or the channel title and description.

Tie two parts together and you got something neat.  Imagine writing a post about Bill Gate and being presented with a selection of Bill Gate pictures including one taken this morning by himself.  Cool!