The image should be marked as selected, with or without resizing handles (should be able to turn that on/off).
As to what should happen to the selection object, well ill leave that up to you to find out.
What I got: Not a thing.
Steps to reproduce:
1) Go to http://tinymce.moxiecode.com/example.php?example=true
2) Try to select the image in any way.
See http://hoeben.net/files/webkit/repro7154.html for a simple repro document.
The image can not be selected, other than blockselecting the image amidst some text. The image can not be scale, moved, etc.
Created attachment 6480 [details]
Added Aldo's testcase to the bug itself.
The image is selectable, but it isn't selectable in the way that it is in FF, e.g. you don't get resize handles.
You can move the image around, contrary to what the reporter said. Just click and hold and drag it around the editable region.
*** Bug 9780 has been marked as a duplicate of this bug. ***
Basically a dupe of http://bugs.webkit.org/show_bug.cgi?id=12250, the larger issue of missing "control selections" that would allow you to resize any element in an editable area.
*** This bug has been marked as a duplicate of 12250 ***
This isn't really a duplicate of the bug 12250. The ability to resize image is separate from ability to select an image.
*** Bug 68801 has been marked as a duplicate of this bug. ***
Not related to AX. Reassigning.