First up, Google has redesigned the post editor. It's still a what you see is what you get editor, but the toolbar looks much cleaner and placing images got about a thousand times easier thanks to a new drag and drop image handling. You can also easily resize images by clicking (or double-clicking in Firefox 3) to bring up a box that asks if you'd like an image to be small, medium or large.
Blogger in Draft also has better support for HTML and enables tables and other advanced HTML code to be placed in a post. And the preview feature brings up a new window so you can preview your post without leaving the editor window.
One thing to note is that Google has turned off the autosave feature, so you'll need to click the save button periodically if you don't want to lose your work. Autosave should be restored in a future update.
