Thank you for getting back to me with the additional information.
I totally agree with you on the administration part situation. This is a problem of workflow for the Images and Documents and I acknowledge that this is not what users would expect to see. In other parts of the CMS which use workfow (pages, other generic content based modules) workflow works as expected, I have prepared sample images.
Unfortunately the workflow for images and documents cannot be fixed so easily and I have to say that we will not be able to fix it for the upcoming SP. The problem is not only with workflow implementation but with the fact that the Images and Documents module uses handlers to retrieve content items from the database, and/or generate thumbnails. Those handlers do not know that the items in workflow process and only pull the available version. We are going to rework this however most probably the fix will make it in the next major version.
I apologize sorry for the inconvenience caused. If you have more questions or issues feel free to contact us.
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