MarsEdit 1.2 is now available for download (or just ‘Check for Updates’ from the app). This is a free update for all registered MarsEdit users.
Three relatively big changes in this release: [...]
Picasa image uploads for Blogger.com. This is pretty transparent. Just select your Blogger blog as the upload target from Images & Files, and MarsEdit will pop the images into a MarsEdit album in your Picasa Web Albums account. Note that Picasa only accepts JPG format images for upload.
Woohoo! I've been wanting this for a long time. And it looks like it works just fine!
Thank you, Daniel Jalkut.