I got this working.. I think..
When trying previously, I was clearing the value within the "screenshot" tag, however PAD was not accepting the code when trying to put it back into PAD - it was expecting the value since we kept the screenshot tag.
So, deleting the "screenshot" tag entirely (see below) got rid of the image in the UI Elements pane (remember there are 2 - one for parent widow and second for the actual ui element).

Actions works just fine so definitively it is possible for Microsoft to allow us to have UI elements without the image.
Result:

Original:

Although the pane shows no image, i see in the code some references to the png files, but it is hard to understand whether these do exist on the local machine (i was unable to locate them) and in th cloud service.
