It still seems like a well kept secret, but you can now post your photos directly as you enter your blog. Find out how from Blogger Help : How do I post pictures?
You just need to be in compose mode and click on the picture icon. You get a couple of formating options and you can browse for an image on your own computer or use a URL to link to an image already on the web. However I'm not sending hello or flickr to the software fridge just yet.