I've recently been playing with Wordpress for the iPod Touch and iPhone. It's a very simple application which allows you to write posts while you're on the go, and post them to your blog over whichever network connection is most convenient.
My impressions so far are that it seems to work pretty much as advertised. You can review blog posts written by others, change their status or edit them, and add new posts. You can even attach photos that may be on your device - although there isn't really any way to take photos from the touch, so iPhone users will be the only ones to really benefit.
Overall - very simple and does what it says on the tin. It doesn't solve your bad iPod typing (if you have fat fingers like me you might be struggling to write longer posts without them reading like Klingon) but it does give you another way of getting your musings up on a blog from your cafe of choice.
Overall, I'd give it 3/5.