Here is a diff from an inexperienced user who was attempting to insert an image: https://en.wikipedia.org/w/index.php?title=Dick_Thornburgh&diff=567702907&oldid=565038368
The user added two line breaks in the middle of words without noticing it.
The VE should be smarter about where images get inserted initially (never in the middle of a paragraph) and what happens when images are moved. In particular, if an image is dragged into the middle a block of text and then moved somewhere else, the block of text should end up in the same state it was in to begin with.
(It would also be helpful if there was some better visual indication of where the image will move when it gets released. As I drag the shadow image around the page, it would be nice if another image-shaped box would move dynamically to wherever the image would display if I release the dragged image at that point. Currently, it's a mystery where the image will move to. I guess that part of it is bug 51292.)