WebAssist -> Image Resizer
No it cannot be integrated with the insert update form.
The idea behind image resizer is that you upload only one large image to the server and use that image on your pages and specify a desired width and height.
at run time, if one does not exist already, it will create a new copy of the image using the image resizer settings.
This allows you to have one image, but create multiple copies of it throughout the site. maybe on one page it shows at 50% width and height, on another at 25% width and height.
This becomes beneficial if you later decide to change the dimensions, you don't need to reupload the image, just edit the width and height of the image tag and the new size is generated automatically.