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I am not sure whether this is new or not, but Lockergnome allows you to create a blog with a lockergnome URL on Blogware. On his domain you can register, but for the management of the blog, you user the Blogware-interface.
Has he become a reseller? This might be an interesting enabling service, i.e. allowing other users to start a blog with your domain name.
[inspiration Social Software Weblog]