PressThis bookmarklet does upload images to the wp uploads folder that you add to the article. Basically in the PressThis window go to the ‘Add’ menu and click on ‘Insert an Image’ icon.
It will populate thumbnails of images found on the web page you are on. Click on the image you want to include in your post and that will open up a small window with the image you selected. As well there’s an empty Description field and just above that field – on the right click on ‘Insert Image’ and it will insert it in your post.
Now this will insert the image AND wrap a hyperlink to it to the web page that you got it from but once saved it will upload that image to your site.