The piece elise.com: On the Job: An Overview of the Weblog Tools Market by Elise Bauer gives a nice summary of the current situation with weblog tools. Of course, Blogger is the leader, with Livejournal following closely behind. More hosted services are mentioned in the article, as are weblog tools such as Wordpress, Drupal and Greymatter, which require installation on a local server, and so are normally more popular with more technically-minded bloggers.
The article goes on to show perceived market share, and which tools attract which type of person.
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