I just came across this Wysiwyg editor - which is small in size, uses jquery. Ofcourse, adding jQuery can increase the size, but we can always point to Google's hosted jQuery if required.
The demo let me upload images also. I have not tried this out on my test server yet. But just posting as an option.
Here is the link to a demo from their server:
http://www.avidansoft.com/dsrte/index.php