This does have some cool WYSIWYG features to it and does make it easy to format posts to your liking. It does not allow you to work with any plug-ins that you may have installed, but this probably could be coded as a plug-in for Live Writer and give bloggers the ability to control any plug-ins they may have on their blog. Plug-ins to control plug-ins!?! Does that make sense? The idea is sound though and I really like the concept. It is basically like having a word processor like MS Word to assist you in formatting posts for the web.
I can see how this would make general posting to a blog very easy and convenient. After spending a little time with it I was quite impressed with the feature set for the Beta release. The spell check, image formatting and Live Local features are a very nice touch in my opinion and I can see how I would be able to use this along with the additional publishing features of my blog to make posting a bit more convenient. I look forward to seeing what progress is made with this application in the future and what kind of plug-ins for specific types of blogs; Wordpress, Blogger, etc. are developed to work with Live Writer.