Think it's graphicsx. One of the packages, anyways, lets you include PNGs, JPGs, etc.
It is also not nearly as bad as you depict. Vector drawing is handled nicely by pgf/tik. If you want meta-control of tikz, you can use the wonderful tikz backend for matplotlib. There are also beautiful ways to produce EPS or (better yet imho) PDF for LaTeX, with embedded TeX fonts, including Matplotlib and the amazingly powerful PyX. Btw, the graphics inclusion package is graphicx.