Ahh, media and the hardships that come with it. You already know that twine 2 can't embed media so you much work around it. I don't know if I can help too much, but I do know that I was able to get images to work on my website using neocites. I recommend it(its free). All you gotta do is upload the image to obtain the image link, then you gotta do this.
<center><img src="Name of file.filetype" alt="This text will show up when you hove over it"></center>
<center></center> is optional.
You can put this code where ever you want the image to appear relative to the text.
The issue is that for this to work, the twine story file must also be uploaded to the same website you have the image.
I also have no idea how to use images as links, so this answer might not be helpful at all. If this is the case, please hide this answer so your question will still attract others.