There are two ways (at least two that I tried).

One involves enabling "Show selection bounds handles" (this is the button just above the selection tool, it has a big square surrounded by 8 small squares). When you do this, then after you click an image you will be presented with the old 8 black little squares surronding the selected object, instead of those new blue dots and stuff.

The second method is to apply a group to your image (like, a group with this image only) - then old selectors (8 black squares) will appear around it.

After you've done one of the above, hold Alt and then click and drag one of the non-corner selectors to stretch/squish your image.