Hi,
Someone on IRC, I forget who, suggested that we should end this ability to upload new revisions of images. I agree.
It's something vandals can use to alter articles without affecting the watchlist; it also means that when looking at an old version of a page, you don't necessarily see what content was there at the time.
In addition, the image usage (with reversions, etc) is quite tricky, and there seem to be some caching problems that can lead to people seeing an old version.
I suggest that we simply change the system so that, if you want to upload an image, you must give it a unique filename. You can then alter articles as necessary to link to the new version.