For anyone new to the Web who hasn't picked this up and might be interested, Word 07 does exactly that. I've strayed across a number of positive reviews from those who like to write drafts in Word and post direct. Seems its quick and easy; though comments on the link below do refer to the niggling question of how to turn off word formatting when posting.
(Plus there's no reference to uploading text with photos, and so far I haven't found a working demo to check).
Must admit I avoid posting drafts - or copying text - from the older version of Word as I find it tends to mess up line spacing and type size and generally slows things down. Maybe I'm missing something here, but sounds like this could be a more versatile option than using Blogger draft. Here's the link to a Skatter Tech review from early '07; be pleased to have feedback from those who already use this option.