@TW_Tones:
Normally, the $image widget ignores any enclosed content. However, @Bob_Jansen is using a modified version of $:/core/modules/widgets/image.js using code I provided here: Fallback handling for $image widget.
This altered core $image widget code allows you to provide fallback wikitext content (such as rendering an alternative $image widget) if the source=... specified in the enclosing $image fails to load.
-e