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You can add photos in Notability. I think it handles that pretty well. The feature is hidden under the plus button on the bottom left of the screen. You can add a photo from your album or take one and insert it in the note, then you can add a caption, resize, crop, and even draw on the image. No rotating apparently. The neat part is that the typed text wraps around the image, and it will adjust if you move it around.
That said, I have never found a use for Notability myself...
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