Maybe not purely a UI issue:
It would be an idea to show images not neccessarily in/as one line (they might keep this position in the XML) but to display an image tied to the paragraph the image is part of. This allows a faster workflow for the XML editing (not spending too much thought on the precise line) and is certainly philologically meaningful. For the view, one could show image and paragraph text next to each other, also tying together both visually on the screen.
Maybe not purely a UI issue: It would be an idea to show images not neccessarily in/as one line (they might keep this position in the XML) but to display an image tied to the paragraph the image is part of. This allows a faster workflow for the XML editing (not spending too much thought on the precise line) and is certainly philologically meaningful. For the view, one could show image and paragraph text next to each other, also tying together both visually on the screen.