Is it possible to create a layout where an image spans multiple rows? We want to wind up with something that lays out and responds as shown in the attached image.

Yes, that is totally possible

You can use the width control in combination with align to create these type of layouts. The use of containers allows for even more flexibility, they can be used 'mimic' a subgrid. Since I feel more people might be interested in this I created a short article with video on responsive email layout creation. There you can also download the project I made for this.

Let us know if this helps!