There is a brand spanking new version of Windows Live Writer which came out a little over a week ago. In addition to a number of bugs being fixed, there is tagging support, blogger beta support, improvements to categories, etc. (read more details here). There is also an updated Plug-In gallery.
Some of the things I was ranting about earlier still remain. To the immediate eye, there does not seem to be any major differences – I did not go through the process of adding a new blog. This is still not an MDI, though there is a preference of closing the Window once you have posted something successfully.