Insert module provides a simple, clean way to get out images in-line, but we are not taking advantage of the fact that we have the Media browser for a unified experience. In order to get the Media browser in the picture for in-line images, and provide a really cohesive editing experience, we're going to give our users a WYSIWYG (what you see is what you get) toolbar, and add our browser to that toolbar. We'll be using the WYSIWYG module, along with the external CKeditor library.
Note: This series is covering Media Module version 1.x. To learn about Media Module 2.x, check out our Using Drupal Chapter 4: Media Management series.