Its news about a week ago, but on the Blogger Buzz, its was announced that they are going to shut down the FTP publishing feature:
Rick Lau from Blogger Buzz explains:
FTP remains a significant drain on our ability to improve Blogger: only .5% of active blogs are published via FTP â€” yet the percentage of our engineering resources devoted to supporting FTP vastly exceeds that.
Its sad and will probably wreck havoc for a lot of bloggers. Even though 0.5% of the active blogs are published via FTP, I feel that this would have been the ones which are MOST active!
This means that the only way to have a blogger powered blog using your domain is via their “custom domain” settings, where you own a domain, but point it to the Google servers.
This also means that blogger affected by this will have to migrate their blogs back into Google’s servers. The Blogger Buzz post mentioned that they are going to provide tools and extensive documentation on how to do it.
But, frankly if I’d had to do that, I’d rather switch to WordPress and maintain control over the hosting. Not that I don’t like Blogger, but because there is so much more you can do when have more control over the files on your site.