Here is a good news that I got late. Blogger has updated it's post editor. New post editor has some new useful features. It added some new buttons like undo, redo, text background color, strikethrough and and jump break. Also you get new post options. Look at the following screen shot.
- Improved Image Handling
- Easily resize or remove an image
- Improved Raw HTML
- Add your location to your posts with geotagging
- Full Safari 3 support on both Windows and Macintosh.
Switch to New Post Editor for Blogger.
Go to Blogger Dashboard >> Settings >> Basic. Scroll down and look for Select post editor. Select Updated editor and save settings. Now all your blogs will have this new post editor.