geni said:
It is a fact that a linked image cannot be put back into the article by the browser, but an inlined image *can* be turned into a link or placeholder by the browser.
In fact it is theoreticly posible to turn a link back into an image
I think you use the word "theoretically" with great licence, even though it is a significant concession. Where in the page would the image be placed? What size would the image be displayed at?
Can you prove it degrads the enclyopedia?
Absolutely. Here's an exercise.
Write a test article on your sandbox. Place an image inline in the article. Place it so that it goes well with the text that it illustrates. If it's a diagram, annotate it so that points in the text are plainly depicted. Notice how well the image complements the text. Notice how the placement of the image can be used to break up long text, and how the use of color, in the case of a colored image, makes the page more attractive. Now edit the article to replace the inlined image with a link.
The article and the image are now separated. It isn't possible to see the linked image in the article any more. One has to memorize detail when switching from image to article--even if one places them side by side in separate browser windows. The article has been degraded.