This is TERRIBLE! Besides being able to edit vector images like Will mentioned (which is important for those of us who don't have graphic artists available to create custom images or the budget or time to buy that service ad hoc), you could also search for style "families" (different graphics that were all in the same style). There was a huge range of files and styles in the collection and it was much faster to find what you need than to do a Bing search. Plus, you knew that everything there was free and free to use, without having to worry about CC license issues.
If you mean your own artwork, then you'd take a picture of it, upload it to your computer (make sure you know where you're saving it), then select Insert > Picture in Word, browse in the location where you saved the photo, click the picture, and insert. If you mean an image from the internet or something, you can just save it to your computer and basically follow the rest of the steps above.
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Back in the ‘90s, Clip Art took over Word and PowerPoint files thanks to the thousands of office workers and students who used the images as a way to “improve” their documents. These days there are a large number of free images available on the web, and Microsoft is recognizing this by killing off its Clip Art portal in recent versions Word, PowerPoint, and Outlook. “The Office.com Clip Art and image library has closed shop,” explains Microsoft’s Doug Thomas. “Usage of Office’s image library has been declining year-to-year as customers rely more on search engines.”
Which brings us to Creative Commons, the license Office’s new Bing-powered search filters for. My colleague Danny explained what Creative Commons is, and why you should use it What Is Creative Commons, And Should You Use It? What Is Creative Commons, And Should You Use It? Creative Commons is a set of licenses which automatically give you permission to do various things, such as reuse and distribute the content. Let's find out more about it and how to use it. Read More , but the quick version is that it’s a way for artists to tell the web their images are free to use.