Once upon a time in the Drupalsphere, there was the Image module, which was the preferred image solution for all Drupal sites. It dynamically resized images for display, so you could upload one image and get other sizes. But it was limited to one image per node, which made it hard for situations where you wanted to insert several images into one article. All kinds of workarounds emerged, but it was all a bit kludgey. It was nice to have something, but people were looking for something better. When Imagecache came about, it was received with much excitement, and it soon took over as the preferred image handling solution for Drupal, because you could attach several images to a node, and because it was much more performant and scalable. When Drupal 7 was in development, this functionality was considered so essential that Imagecache was incorporated into Drupal 7 core and renamed "Image". (Yeah, it can be a bit confusing if you don't know the history.)
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