Google's Blogger is a fantastic service. However, there's always room for improvement, and I hope I can do my part helping a little bit, especially since they let me use Blogger for free. This suggestion will help people better navigate their images, save time, and save storage space.
When you click to add an image in Blogger, it doesn't show you images you already have in Picasa, which is where Blogger loads images to. To better explain what I'm talking about, I took a screen shot of my window and modified it with GIMP.
With this you wont accidentally load the same image twice, you can easily find images you've uploaded in your Picasa storage and put them on Blogger, and last but not least, even if you already do know how to get your file on there from Picasa, it wont take as much time this way.
If you have your own storage space however, you can use the Windows Live writer program and it will allow you to easily store files and create automatic thumbnails on your own ftp server.
Related: You can see how much Google storage you are using here: