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The development team behind Redactor explains that users can now simply drag an image into Redactor and it will be uploaded to the server. No settings are required and simple API calls and callbacks can be found here.
Scaling functionality is included so that once an image is selected, it can be intuitively scaled it by dragging the bottom right corner. There is the ability to move images across text and quickly drag images until they are positioned exactly according to requirements.
The copy/paste function allows the user to copy an image from a hard drive, Photoshop (full image or section only), or MS Word and then just paste it wherever you like inside the Redactor user area.
Link parsing also features so that users can insert a link to a YouTube video and it will be converted to YouTube's embedded video player. Insert a link to an image and it will be converted to an actual image with a proper <img> tag.