I love Blogger as you know. However, it has always bugged me that you could not load custom-sized or large images through Blogger unless you tweaked the code as seen in this older post. Honestly, it was a PITA.
However, Blogger finally listened to me ;-) and made it right!
To post large images, you can resize your image to the final size you want to post (make it easy and use one of my free web actions; Web Frame It, Web Color Block It, Web Drop Shadow or Web Rounded Corners) and then upload it through Blogger's new uploader.
Then click on Original size as seen in the screenshot
And presto, your original-sized image will be posted!
There might be times you want to post a custom sized image that is smaller than your original uploaded image. Or you uploaded a huge image that will not fit on your blog. This is an easy tweak. Upload your image, click on Original size, and then add width="xxx" in the code as seen below. This is the final width of your image (600px wide for my blog).
Now my posted image is 350px wide. :-)
So easy and about time!