Google today added drag-and-drop image uploads and insertion between your desktop and Google Docs for anyone using the latest versions of Firefox, Chrome or Safari.
Browsing through your upload dialog to upload something to the web when you're already staring at the file on your desktop is always a painful process. Some people hesitate to ditch desktop apps like Microsoft Office for Google Docs because of that sort of lack of desktop integration, but Google is continuing to chisel away at those obstacles. Now inserting an image from your computer into a document is as easy as drag-and-drop.
You'll need to have enabled the new version of Google Docs if you haven't already, but it's easy to do: Just navigate to Google Docs settings, click Editing, tick the checkbox next to New version of Google documents, and then click Save.
It's a relatively small upgrade in the grand scheme of things, but it's really handy if you're a regular Docs user.
Drag and drop images in documents [Google Docs Blog]