Because I am using Obsidian to produce posts etc, I would prefer to create content using the Markdown syntax I know. I have now gotten it to play nice with Jekyll Includes Syntax

Jekyll requires a specific structure for includes docs:

{% include image.html  
    src="image1.png"
    alt="Alt text 1"
    title="Alt text 1"
%}

Whereas the Markdown syntax is simpler:

![Alt text 1](image1.png)

With the changes brought into the obsidian_to_jekyll script, the conversion from Markdown Image Notation to Jekyll Includes Notation just works!