Fold image preview into thumbnail

[plagasul]

When adding an image block it stretches horizontally to fit the whole space of the editor, this produces huge images, particularly with portrait-sized images, which are very visually intruding, just like this one which goes down below further than my screen's height.

This also creates a problem, if you select 'insert below' in this image block menu, and add, for example a text block and start writing... you cannot even see the block you are writing text into... because it is so down below...

It would be nice to be able to 'fold' the image, so it occupies less space. For example like this:

If, by following markdown-like logic, the image preview does NOT represent at all the image's final form in the frontend, then why humongous and not thumbnail?

Thank you