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> If a user needs a dynamic image he can download it to his own machine and upload it.

Doesn't that somewhat defeat the purpose of a dynamic image?

The reason I use Google docs is to use Google to fetch and do the rendering for me. I don't include images in my spreadsheet but I certainly think some people do. It's a feature.

Moreover, the issue is not about the feature, it's whether Google should limit the number of requests made per image. From other comments it seems like Google is hitting each image hundreds or even thousands of times. I suspect this is for cache? If that's the case, Google should look at better way to handle it. A single fetch and propagate to closest zone should be enough. But this is not a reason to limit the feature (eliminating parameter query).

I've seen people use Excel with millimetre-scaled columns for creating bills and other documents instead of using Word, no joke.

You see a surprisingly high amount of excel-based bill templates - and you may want to hotlink the company logo or a signature.