Yes blogger has merged with google to bring us a new version of Blogger. Its still in beta mode but if you have a google account you can get one to try out. People with old blogger accounts can merge with the new version.
It has super new features such as drag drop template edits, automatic repulishing, add labels, catagorised archiving, as well as the old features and many more. It works fine with IE and Firefox but still has problems with Opera and Netscape. So looks very very promising. Check update here.
Take a look at my test blog in blogger beta.