The case where image-mode isn't equivalent is where you use
`insert-file' to insert an image -- auto-image-file will cause the
inserted text to be covered with the image, but image-mode won't do
anything (unless the user invokes it afterwards, and then it will only
work if the image is the sole text in the buffer).
I can't imagine that this distinction matters for programmatic use --
it would be just as easy, and maybe more straight-forward to call a
dedicated `insert-image-file' function.
Rather than an insert-image-file function, I think the best thing to
recommend is, "Visit the image file, then copy it in the form you
prefer." That is natural, and requires no additional commands or
knowledge.
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