A friend of mine recently converted from Windows to Linux and has been looking for a good app to replace Windows Livewriter. From talking to him it sounds like handling images is the main feature he is looking for.
Are there any good apps for this? Switching blog engines isn't really an option for him, so it needs to be a standalone app or a web app that generates html that he could cut and paste.
I myself use Markdown, but please no 'just write html', 'just write markdown', 'just write xml and use a custom xslt transform' type answers.
EDIT: I realized I've probably been a bit too restrictive in answer choices here. Please give your suggestions for a solution. Regardless of whether they meet my friends particular needs, they might meet someone else's needs.