I'm not 100% happy with this, but it's still the least effort I know of.
I take photos with the Canon 20D, which then uses an eye-fi to upload to the server. The script on the server auto-sorts into directories by month.
I then use picassa on the linux desktop to pick out suitable photos, occasionally cropping particularly dud ones that I still want. After getting a few useful pics, I click on 'Blog this', and then 'Save as draft'. (As the picassa blog editor is awful).
Then I got to blogger.com, click on 'Edit posts', select the draft and add text. Then publish if all goes well.
Things that suck:
1. Picassa on linux frequently forgets to scan the directories regularly. I need to go to the Folder manager, change nothing, click OK, and then it finally scans the directory and picks up the new images.
2. Picassa won't 'Blog this' with more than 4 pics. Sometimes this is a pain.
3. There's no easy way to add captions to pictures that show up in the blog post. Picassa lets you set captions on pictures, but promptly discards them when you ask it to generate HTML. I kinda get the impression that 'Blog this' was a kinda half-arsed feature.
4. The Blogger editor is pretty flakey. Then editing posts that have images floated right, it's easy to get into a state when it simply won't add text at the top of the post. Increasingly, I just edit the HTML as it's easier than fighting the editor.
5. The whole process is still a large work burden than I'd like. My mental barriers to regularly updating the blog are high enough without fighting tools as well.
What do other people use?