Yeah, I agree. That's why I contribute so much to that area of the CMS! It needs it. If you're looking for live image editing, though, I know there is an Flash-based image editor in the Files and Images section. I never use it because the template controls for resampling images are so robust, but it might be worth checking out.
Joomla is okay, but it's not made in New Zealand. How's that for an argument to take to your colleagues?
There is a good java uploader (jupload www.jupload.biz) I have been playing round with. It should be possible to integrate that with SS. The real advantage of this sort of file upload is that it does image file resizing on the client PC rather than the server.