Yes, that is quote embedding, I will check to see if it is enabled or not. If not, you think that is something that should be?
I believe so...for the reason if 2-3 peeps are throwing in their $.02 in on a subject, it helps with one's new post. They can "read back or review pictures" that are embedded more than 1 post prior to help generate their answer without having to scroll up, look at a pic, scroll back down to answer...maybe several times scrolling back and forth instead of having the pic or text on the screen directly above their current posting area....
I don't believe so....for the reason that many times quotes will get stacked 5-8 deep and really gets cluttered, especially with pictures that keep going on and on...back to the scrolling thing, only for the opposite reason as above.....

....and for you as admin, space requirements could be an issue if pictures kept getting quoted on and on also?.....
Is quote embedding a simple "on, off" switch or can you select a maximum # of embedments?....

.....Lance