Here's how cropping has been up to 2.4 and in Writer 3.0. It works, but it's a little bleagh. You crop by specifying in your favorite unit of measure how far in from the top bottom left and right to crop an image.
So in 3.0, in Draw but not in Writer, you can crop just like you always wanted to, and can in other applications. You start out the same way as always -- insert the picture, click on the picture, then click on the Crop Picture icon on the picture toolbar.
(This is my good friend Max, but let's say that I was mad at him and wanted to crop him out of the picture.)
When you click on the Crop icon, you get these lovely crop handles.
Just drag'em where you want'em.
And there you go. No more Max.
I click off the graphic and it looks the same, of course.
But! Note that it just crops the display of the graphic. If I cool down and decide not to be mad at him anymore, I can decrop, just by clicking on the crop icon again and dragging the crop handles to include where he used to be.
Note: There's a Crop extension too but there's no Undo associated with it.