Of course that's a good point that the starting location in the sheet is lost. I didn't consider that because if this is being done just to create reports in Excel (my normal use) then it really shouldn't matter as the user has never been in the sheet to begin with, but in the case of an existing sheet, it is an issue. I do like your idea of adjusting location after insertion, it seems neater than jumping around on the sheet and would only be improved if Excel would allow one to specify the insertion point to start with.

I tested a bit and your method appears to have the same results as inserting in the active cell too, with respect to effects of row and column insertion/resizing shifting the cell later. I wondered if your method would associate the image with an absolute sheet location (which might even be handy in some cases), but it appears to link to the cell location, so all in all I think you have the winner!