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First problem is they are moderated. The whole point of blogging is you can update daily and people can follow you, but whats the point if the posts don't show up right away? I still have posts waiting for moderation since April 9th.
As Svpernova09 said this was originally done to combat all the spam blog posts, but then nobody has been approving valid blog posts. Oops.
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Second problem is there is not enough storage room. I made less than 10 posts before hitting the attachment limit, and since I am not allowed to delete my own blog posts I will have to post text-only or host the images elsewhere.
In addition to bypassing the moderation queue, your attachment limit is increased to something that you hopefully will not reach any time soon. You can still host images elsewhere if you like ;)