Since the editor does no caching of its own, it keeps trying to reload the remote URL for images included in the post. Now that images are included in the edit mode as well, this results in a huge degradation of UX - it keeps spazzing out and scrolling all over the place, moving the cursor out of view. Keeping images locally is not an acceptable workaround.
Steps to reproduce: write a post that has 1000+ words with remotely hosted images scattered throughout it.