It appears that you are right and the image is indeed a fake and I was wrong. Well, that's what I get for trying to fan the flames without properly inspecting the evidence first! Still, it is not really clear who shot down that plane and if it's all a provocation plot or just a tragic mistake that is used as an excuse for Ukraine and Russia to play the blame game.
EDIT: Even the place I got the damn picture from says it's fake. God damn was I stupid and overeager there.
EDIT2: Even the other Russian state-owned media channels claim the photo was a fake. I think the Russian expression of "ёбаный стыд" is appropriate here.
TRANSFEREDIT: @Mictlantecuhtli (hope I spelled that correctly): The actual Russia watcher you are refetting to is Simon Ostrovsky of Vice news, who is known for his pro-western slant. In the report that you are claiming shows how the DNR is "a fascist movement", there is really nothing to indicate this fact, aside from a very unfortunate phrase by Mozgovoy about how he will "arrest women for drinking", which was really, as he himself states later, a failed attempt to refute a rape apologist's claim with the help of an argumentum ad absurdum.
As for Anatoly Karlin - I highly recommend him, as the majority of his posts are skillfully argumented and meticulously sourced.