If I place
(insert-image (create-image "/tmp/test.png"))
in a buffer, place the cursor after the last parenthesis and evaluate it with C-x C-e, then the image /tmp/test.png is displayed in the buffer:

Pretty neat. But,
(insert-image ...) text altogether?(insert-image ...) text only, not the
image. I'm happy with that, but is there a way to tell emacs to
automatically replace all the (insert-image ...) expressions by
their corresponding images (after the file is opened) without me having to type C-x C-e after
each one?Take a look at iimage-mode, the inline image minor mode. It's included since Emacs-23, IIRC.
M-xiimage-mode