Its a welcome step from Blogger team to have direct video uploading facility in blogspot platform. You can notice the new Add Video icon, near the Add Image icon.
In the earlier days, in order to embedd video we had to upload the video into YouTube or Google Videos and then embedd the code in blogger. Now we can have hassle free video blogging with this new video uploading feature.
Hats off to Blogger team. I feel this is one of the great Birthday party from Blogger.