Last month I mentioned a homebrew operating system [1] that allowed you to freely mix text and images in source code. It seems not to be the only system—you can now manipulate images directly in equations [2] in Mathematica [3] (link via reddit [4]).
Drool …
For those of you who may have gotten multiple email updates, I apologize. I had an unfortunate email incident (I do updates via email) and five copies of this entry were posted.
Those responsible for the email problem have been sacked.
[2] http://blog.wolfram.com/2008/12/01/the-incredible-convenience-of-mathematica-image-processing/