I'm not entirely sure how it works, but have noticed that the pics of mine coming up in google search are those posted on flickr that have the most views. So I assume it picks the pictures that it thinks are popular to appear. The good thing about posting on flickr too is that you can add all relevant keywords so again I think google finds it easy to select relevant images from there.
I'm not sure how you would improve the chances of blog images coming higher up in the google image searches, though.
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