Inline Images: Can't replace image

[melchoyce]

Describe the bug
When you add an inline image, there isn't a way to replace it with a new image.

To reproduce
Steps to reproduce the behavior:

1. Go to the editor and add some text.
2. Click on the dropdown arrow and click "Inline image"
3. Upload or select an image
4. Click on the image; you can change its size, but not replace the image.

Expected behavior
I expect inline images to have a similar block toolbar as images, or, image settings should be appended to the paragraph/heading toolbars.

Screenshots

Editor version (please complete the following information):

• WordPress version: 5.5.1
• Does the website has Gutenberg plugin installed, or is it using the block editor that comes by default?: Default

Additional context
This came up while trying to implement a pattern in Twenty Twenty-One: WordPress/twentytwentyone#299

[annezazu]

I was able to replicate this with 5.5.1 and Gutenberg 9.1 after chatting with @melchoyce and getting this screenshot showing where the option lives:

[Mamaduka]

It looks like you can replace inline images, but action is just very obscure.

Maybe we can place the "Edit" or "Replace" button in the width popover.

If someone can provide mockups for the new UX, I'll be happy to do the rest.

Screencast

block-editor-replace-inline-image.mp4