I too tend to agree here, for a bunch of reasons.
However, I think that the wordpress staff and the users aren't listening very well to each other on this one.
For users, you need to understand that the source of your frustration is that you have often used this tool to make up for poorer source material, or as a way of making a theme do something that it otherwise does not do. I have used it to "float" images in a post (by adding Float:left in the advance options after setting a border). It's not the "right" way to do it, but it is often the expedient way to do things.
IAmediaworks, you example is perfect. Varying size images are perhaps better addressed by correcting the images themselves. Yes, that does require some effort outside of wordpress, but the old saw of "garbage in, garbage out" applies. Yet, I understand what you are doing and wordpress should still support it, because it is expedient and a very direct way to solve an issue.
They are also tools for people who are not in the position to edit the themes or who are not comfortable with creating child themes.
For the developers and wordpress team, you guys and gals need to step back and moment and have a good think here. Up until fairly recent wordpress history, child themes were not really supported, and correcting display problems by editing the theme meant that you could no longer update the theme without losing your fixes. WordPress itself taught us to use the advanced editing tools for these very reasons. The current and very sudden "fix it in css" mentality goes against everything wordpress has done for nearly 10 years. It's a big shift, and pulling the rug out from under people by removing a tool (without any obvious reason why you did so) leaves them feeling unsupported and out of touch.
Moreover, you start to create a gap between the "can do CSS / can program" and those who cannot. Fixing it in code or in css isn't easy for people who don't grok the concepts, it creates a high barrier to entry for those who would want to use wordpress, they are now stuck using the themes as presented - or they get to pay someone to fix it for them. That certainly goes against the wordpress way for the last 10 years.
I also think that wordpress risks running itself into the problems that face frameworks that rely too much on plug ins and external pieces to really work. That risk is that no two installs can ever be the same, and debugging them and making them truly work becomes a nightmare. As anyone who has tried to debug a drupal site someone else created, there is always one or more annoying plugin getting in the way, it seems... and no two installs ever seem to be the same.
When you remove functionality, for some it creates netsplit. Some people will refuse to upgrade (so they don't lose their tools), and over time that may increase security risks and support issues. WordPress is very a much a "current version support" product, most of the plugins are "current version" if they are maintained. It's not a pretty scenario in the end for anyone.
Is that the future for wordpress? If so, let us know now, so that we can consider the alternatives.