Editize seems pretty cool, but to me ideally it wouldn't be java based. Users (I myself) often flee from places where Java is used as it slows my computer.
My latest find:
Text Editor Component v1.1- Free.
- Compatible with any platform & Browser that has flash (99%?)
- Small size, small download, and very cache friendly (flash caches very well).
- Simple & easy to use. At this time it does not have the image attach, though.
There should be another flash based one, very recommended by many sites, here:
Stuart Schoneveld's Flash-based Text Editor, though right now the link at the site is broken.