I don't know if the feature is still around since I NEVER used it, isn't there an e-mail your post option? You email whatever@yourdomain.com and it gets published in default category?

How would the offline post making thing handle media?

There are people who pay for internet in hourly basis. So I do see advantage of offline post creation, type it on your laptop, go to internet cafe/dial up/whatever and then send it up to your site.