The reality of blogging at WordPress.com is that this is an ever changing blogging environment as it's on continuous rollout. Code changes are being made constantly and in cases like this new post editor reversion is not going to occur.
Yes, there has been a chnage to the interface at https://wordpress.com/post/ and Staff are recommending that we bypass the New Dash in favor of posting directly on our sites. http://en.forums.wordpress.com/topic/where-did-the-add-media-button-go?replies=2#post-1927520
For image uploading please note the Staff response here http://en.forums.wordpress.com/topic/why-is-there-now-only-small-pictures-in-the-post-can-i-get-them-big-again?replies=3#post-1927594
The original place to create a post with full features to upload images, etc is here Dashboard > Posts > Add New and it works very well for me.
In fact I never ever use the Add New at https://wordpress.com/post/ which is undergoing changes as part of an ongoing project to make the site multi-device mobile friendly.
That is why the advice is to go to Dashboard > Post > Add New
For inserting images see http://en.support.wordpress.com/images/adding-images-to-posts-or-pages/
For image editing see here http://en.support.wordpress.com/images/image-editing/
As for your new dash feedback, if you wish to, then you can post it into this thread http://en.forums.wordpress.com/topic/posting-articles-2?replies=88