Some stuff that's been around since StarOffice is just not getting fixed even under the rapidly evolving LibreOffice. The issue in short is around adding an image and have it just float around tediously the page until you "anchor" it. I can see some reasons for this (e.g. imports from Draw) but for common word processing operations, it's a huge pain. At the minimum, default image drop behavior should be something in the options.
around for this (hilariously) is to open another word processing program AbiWord (I specifically recommend the WinPenPack version "X-AbiWord"), paste in some images, and then save it
as a .DOC file. When you import it into LibreOffice, the images automatically go to
the "Anchor - As Character" setting, which is really how it should be anyway.
(This works in OpenOffice as well. Tested with Abiword
Update: I posted a HOWTO addressing this.