This could be nice and useful for kids of all ages. Imagine embedding an image as you do normally, and then calling up the editor to crop it, or to annotate it (arrows to emphasize, etc).
Any good ones to use as reference? Any FOSS ones that I can get the code for and tweak it to run well on Gnash? (XO laptops don't have Flash, they have the open source implementation, Gnash.)