You cannot internally drag and drop text or images within AlloyEditor.
Steps to Reproduce :
1. Content -> Blogs -> Add Blog Entry
2. Upload an image to the blog post content
3. Write text to the body content
4. Attempt to drag image in between some words
Expected Results: The image is moved to the location the cursor indicates.
Actual Results: The cursor properly traces where you will 'drop' the image but on mouse up nothing happens. The image is not moved.