Pages 5 absolutely does not work flawlessly as these forums attest.
The extra steps to place an image is only one of countless procedures in Pages 5 that have got the same clumsy and inept treatment.
Apple had the choice to openly introduce new Pages, Numbers and Keynote, fully informing their users what exactly they were doing and laying out their plans to transition eventually to a new suite without harming exist users' work and leaving users with complete access to the suite of software they had paid for.
Instead it was underhanded to the point even its own staff did not know what was going on.
I find it difficult to take seriously a software developer that:
1. Doesn't apparently test their products before releasing it
2. Overwrites files without warning
3. Knowingly damaged opened files and then auto-saved them
4. Claims new software is a huge improvement when by every known measure it is a huge downgrade
5. Beta tests their software on its users but doesn't tell them that is what it is doing
6. Auto replaces users software behind their backs
7. Moves previous versions of the software to a new undisclosed location but doesn't tell its users, or even apparently its own staff
8. Doesn't support its file formats long term. Even the file versions of the new minor version upgrades are not backwardly compatible within the minor versions
9. Doesn't demarcate the different and incompatible file versions with different file extensions
10. Doesn't communicate with its users what its intentions are
That Apple has replaced a few of the extremely long list of features it removed unannounced, and taken over 6 months to do so is not impressive at all.
The only thing that impresses me is just how little users actually seem to comprehend about software they claim to use daily and over long periods of time.
Peter