For me, time is money.
If someone can afford a computer, there is a decent chance that they will be able to afford the $10 startup required for a domain ($7.15 @ GoDaddy) and hosting (available for less than $3/month with low specs, but enough for a small blog.
As you expand, you have invest out of what you make - however, working on Blogger for two months and then realising that you've gotten so popular you need to move is an insane waste of the two months as you'll have to start off from scratch on a fresh domain - no PR, no links, nothing. Also, typically you won't be able to sell a Blogspot blog for much as you don't own it.
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