I was poking around the software repository for opensuse 11.1, and came across a tool called gnome-blog. This is a panel applet which is supposed to allow me to post to my blog directly from the desktop rather than the supposedly tedious process of opening the blog website and posting from there.
Anyways, the tool is supposed to allow me to drag and drop images inline with the text, so I figure I will give it a whirl.
This version of gnome-blog is from 2006, and appears to be the most recent, so I suppose that development has stalled. Google has failed to deliver anything of interest more recent than that.
Update: I am not impressed. So long gnome-blog.