Inline "not respecting" " Image directory preference and so generating wrong links and not displaying images

I investigated further and it is indeed a nasty interaction with the image module.

The strange thing is that deactivating all modules under the image group except "image" (where the subdirectory setting is set) make the aforementioned disappear, but the images are then uploaded as basic files under the /file directory.

I will try to pinpoint the exact module that intercept image upload and enforce the "image module setting directory" and try to understand why the result link is not correct.

yes I think I have it wrong and that the image module is the "culprit".
There is a lack of consistency that I do not know how to handle between uploading any file, an image file, image as nodes, images not as node, input filters and editors that is driving me a bit mad. More importantly I do not see how to offer a consistent and pleasant user experience to users and effectively leverage the contributed work for this. I try to refrain the impulse to "do it myself" because, obviously, this would be inferior, and redundant but I would love drupal core to give more infrastructure to these point (upload handlers, attached content status, editors, containers ....) that really drag down the Drupal experience.
I am "still" learning , or to be more honest still in the "noob" phase so I may be way wrong on many things but my feelings must not be mine alone I suspect, and probably shared by a few or more Drupal "newbies" and end-users.