I'm among those who isn't at all happy with the updated text editor.
With my last 2 blogposts I knocked the dust off of Windows Live Writer, wrote the posts, loaded the posts as drafts straight to my WordPress blog, did some minor tweaks and published.
I tried Advanced Image Styles plugin but it's not working on my site. Who knows why? I don't so I uninstalled it and went with Windows Live Writer.
A Google search shows that there are several other applications that can be used as alternatives to WP's test editor.