Good question! I'd say the vast majority of blogs are hosted on free sites. As bloggers get more interested and adept, they may like to move their blog to a paid host for the features that allow more flexibility for linking between blogs and websites, and for updates to websites from hightlights of blog posts. Moveable Type is a "big name" as a respectable paid host. Userland / Radio is another. I just use the free sites and have been happy with them all. The sites I use all have a WYSIWIG text editor for you to use: what you see is what you get.
Like the features in this a2k site, you will often just type as usual in the posting box supplied. Then if you want to add a URL for an active link, bold or italicize some text or do a few other things, you will be set to "send" baddaboombaddabing!
I mess about with the "templates" that the free sites often provide for your use. A template will come with the whole html coding done for you, to insert into your own template and save, then "publish" to your blog. All the blogs I have now started with a standard template in a style I liked. Then, I have learned enough html coding to be able to move things around, change font sizes, change section colors, insert images, etc. I try not to do too much fancy in the graphics in my blogs - speed and efficiency is the 'thing' to go for.
A website is far harder to get going. If you ever looked into getting a Geocities website thru yahoo.com, you wil be using a wysiwig text editor. But it is a little harder to manipulate. You do get some great features and special effects there. Again, a website is more involved in flash animations, animated gifs, tables, photographs, forums, albums, etc. I am seeing more and more website managers come up with a blog just to coordinate the mail received and chat more personally with favorite readers. Conversations, dialogues, essays, quick links - these interactions are more suited to blogs than to websites.
Three free blog sites:
Blogger
(If you use blogger, that is the software that runs your blog. The host site is
http://www.blogspot.com/)
WebCrimson
My fav is
antville but it may not be accepting new blogs at present until they add another server.
If you surf the blogs listed in
Weblogs you will happen upon many, many free hosts. Some you must use FTP or php or RSS feeds or other particular coding. But I like the basic ones I listed above. If I can figure them out, anyone can! Actually, the help sections, tutorials, and forums for each host will prompt you all the way through your creation.