I'm using Wordpress and Tumblr. I haven't really delved into all that Tumblr can do but there are a couple Tumblr blogs that I follow and they're fantastic.
Between Blogger and Wordpress I went with Wordpress because it had the most options for customizing and could later be ported to a self-hosted site.
If you are willing to spend a monthly fee, I hear
Squarespace is also a good choice.