The new Windows Live Writer now allows you to insert "Events" (Windows Live Events?) and "Photo Albums" into your blogs, see on the right pane. From the screenshot it's already showing what it will look like when you insert a Photo Album into your blog post - it even includes an option for slideshows.
The next screenshot shows that Windows Live Writer now supports directly uploading videos onto YouTube! Also take note of the tab "From Video Source" - the current version of Writer only mentions "From Soapbox", meaning the new version will support inserting videos from other video sources other than Soapbox as well. Keep in mind that Movie Maker will also support uploading videos onto MSN Soapbox, YouTube and other video sharing websites.