[Design Question] When should one use image component over DAM and vice versa?

Recently, one of my colleague and i were discussing about an approach where we had to give our views on dam assets v/s image components. Here is the crux of what we figured out.

If the lifecycle of image is similar to that of the page then image component can be used. If not, DAM should be used. Example -: if the image is being used twice on the page then DAM should be used. If the image is being used outside of the WCM then also DAM should be used.

Sounds Logical?? huh :). To us this sounded magical.. If you wanna further discuss, lets rock the comments section.

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