Zed has built in REPL for several languages, which does have image preview [0]
It uses the Jupytext format [1], for Python at least. Which frankly, is much more friendly to VCS than notebooks.
I agree on the 'format on save' as undesirable default, but disabling that was as easy as flicking a switch.
[0]: https://zed.dev/docs/repl [1]: https://jupytext.readthedocs.io/en/latest/