First and foremost, you have to remember that Word is a word processor, which means that it was designed to create documents primarily made up of text. It was not designed as a page layout program, where you are trying to create image-intensive documents like brochures or flyers. Microsoft would like you to use Publisher for that, unfortunately that never really caught on and most people don't even know they have it.
Anybody having anything to do with the publishing business wouldn't be caught dead using Publisher (myself included), preferring to stick with Quark, PageMaker or InDesign. There are two problems with page layout programs - the good ones are expensive, and they all have a pretty steep learning curve (even the cheap or free ones are hard to use). So most times we attempt to do this with Word, because that is what we know and it is what we have.
Also, many times all we really want to do is to place an image on the document and get it to stick where we want it, and get the text to wrap around it in a certain way. The good news is that this is now a fairly simple exercise, using the Advanced Layout options available for images in Word. Read more about Microsoft Word How-to: Working With Images