So Google has a new version of Blogger that they're rolling out called Blogger in Draft. I've been using it for this blog and I have to say it works pretty well. I haven't had any trouble with it, and the site looks good.
One of the new features is the ability to drag and drop images into the new post editor. Let me try that out...
It seems to work, and it's easy to resize the image, but it's awkward to place. It's not as good as a good word processor, but it works well enough for simple images placement, and it automatically links to the image source. One thing I don't know how to do is how to get this drag and drop between tabs in firefox. I have to open a new window.
Overall I'm pretty happy with Blogger in Draft. I'm sure by the time it replaces the regular blogger (probably in like 2010 knowing google) it will have all the bugs worked out.