Until Drupal 8 arrives, setting up effective WYSIWYG content editing falls to us developers. For many developers, figuring out the available options and their pros and cons can be difficult. Their main goal is to have a usable site up and running as soon as possible. Over the years, I've settled on a recipe that seems to work well for most clients. Other developers that I know often use a similar setup.

CKEditor

I use CKEditor with IMCE as an image and file browser, and I install a variety of add-on modules and plug-ins to make everything usable. Drupal 8 will use CKEditor by default, though its image handling is, thus far, immature and incomplete.

IMCE