OK, here's something more positive:
Ron, which version of Outlook for Mac do you have? Check by clicking Outlook / About Outlook, might be 2011.xx or 2015.xx - 2015 is the very latest one. You need a valid Office365 subscription to get this version.
I've just upgraded as a test to the latest version of Outlook (2015.9) and the Pictures browser on the "New eMail" ribbon in Outlook 2015.9 now supports Photos. Yay. It shows the albums / moments / collections / events etc that you have in the Photos library and you can browse through your photos in Photos, select and drag one or several images into your Outlook email.
You still cannot right-click in Photos and email a picture using Outlook though. So partial success only.