OK...
Please excuse me for having dinner and helping other folks at other sites on the net. Friendly reminder that I'm not an Admin here, just a volenteer trying to assist folks. Please also remember that I'm not at your beck and call nor do I get paid for any of this.
If you want Admin assistance, feel free to drop a Feedback from your Dashboard. I'm just here trying to help folks so that staff can use their time to deal with other issues.
I think you may have missed the bit about it being a part of the issues that staff are having this afternoon that I mentioned in my post.
Uploading pictures via Blogdesk works. There's many of us that use it, including myself.
You'll note that if you try the URL of the picture within your browser URL bar, it returns a 503 error message. As per the other threads, there appears to be something occuring on the backend. Best bet would be to wait it out until staff fixes the issue.