There’s a new Windows Live Writer!
I haven’t played too much with it yet, but from the announcement, it looks like they’ve fixed most of the complaints I had:
Tagging support
Categories are sorted by name and support scrolling, plus improved support for reading categories from your blog
Improved startup performance (me: YAY!!)
Insert hyperlink added to context menu when text is selected
Custom date support for Community Server
Improved style detection for blogs
Fixed issues with pasting URLs and links
Open post dialog retrieves more than 25 old posts