At last, Blogger now allows its users to upload images for their posts. The image upload button is now active. Before this feature was activated, Blogger users had to open accounts with image hosting services such as Photobucket. The downside of this is you eat up the webspace alloted to your account and if Blogger imposes limits (I still can’t find info on how much space Blogger provides its users) , your account may be suspended.
Still, considering that it is now a Google property, you’d expect great things to come from Blogger.