PsycHo is a WYSIWYG template generator for blogs that supports Blogger. While some of the functionality is annoying to a hand-coder such as myself, this is definately a big step in the right direction for pushing Blogger to non-techies. One of the things that I find odd about it is that by default you must enter your blog title/description manually, instead of using the ones from your Blogger settings. While this can be overcome, the average user won’t necessarily see that.
I would like some more code-structure customisability options for hackers (especially hackers looking to help their non-techy friends). For example, one could not implement hAtom in a PhycHo template if he wanted to (at least so far as I can tell). Other than that (a rather minor point to users anyway) the service seems to provide all the features a normal user would expect, including sidebar(s) cutomisation and linkroll(s) editing. Just one more push to get people away from inferior blogging services like Xanga.