It is, but it requires uploading them into the Gallery first.
Unfortunately though, having looked at the pictures you bring up, we are prevented from allowing images that Google considers porn. (Yes, I know that Google is loaded with porn, but the Do Only Evil corporation gets to do what it wants while it dictates to everyone else). Your image samples in "Leaping into the Quarry" would be considered porn by our masters at Google and thus are not allowed.
So, if you can live with that restriction, it's pretty easy to add images to stories. You seem to use a tasteful amount, as that is the other guideline.
Myr