Hi,
A recent Beta (v2.9 Beta 1) did in fact incorporate image handling (as attachments, not inline to the notes):
viewtopic.php?f=3&t=1997However, the feature was removed in Beta 2 due to problems with Simplenote syncing:
viewtopic.php?f=3&t=2007It is planned to return later, but Alex hasn't given an exact timeframe for this, except that he hopes it will be before the end of Summer.
(I would still like to see inline image handling personally, but the roadmap request for this hasn't really received enough user votes - so I will have to make do with attachments instead)
Chris