I like the recently updated Blogger in Draft. It contains many long-anticipated features, including a nifty new editor, something I desperately wanted. Don't be fooled by the word draft, it's in good shape.
There's one small problem, though: even though I can create new posts using the draft editor, you're still led to the original editor when selecting edit links straight from the blogroll. That can actually cause some formatting problems, since both editors interpret HTML a little differently.
So for the short term, I wrote a small Greasemonkey script that mutates the anchor tag. Have fun with it.