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Each account has a certain amount of images that can be stored within it. These images are used for you to design your templates. If you have a template which allows users to upload and place images within it, these will not display within the images section of your account, but still count towards the total limit of your account.
Images are a great way to make highly creative templates. Using the drag and drop WYSIWYG designer, which supports z-index layers, opacity and automatic re-sizing means that you can create compelling and highly graphical templates that will print almost exactly how they are designed and viewed in the web browser.
If you can create your design in Photoshop, you can easily transfer that to Doculicious to make truly great looking templates that are so much more than just black and white textual forms.