I've used the actual blogger website on the G1 and it's an "okay" experience. The text box is too big to fit inside the screen and type at a visible size. Also, any movement of the trackball sends you out of the text box, making it kinda hard to edit, as you loose your place instantly.
One suggestion, type everything out using AK Notepad (or one of the other notepad programs) and copy/paste to that text box on the blogger website.
For the APP creator
1. Thank you.
2. Besides being able to upload a pic and place it easily wherever you need to within the body of the text, and being able to tag the post like you do in bloger, I don't think a first iteration needs much more. I'm a very basic blogger, so I'd be quite happy with that.