I read a few professional bloggers posts regarding choice of platform for blogging. All of them says having your own domain based blogging is better. In long run, when you blog you create a brand. If one has Blogspot or Wordpress.com based blogging it kills your brand.
Other option one has is use Blogger with your own domain.Blogger provides step by step guide to do so.As per John Chow if you stick with these free services you compromise on feature.
So I have decided to try my own domain name as well as hosting. My choice of software will be Wordpress with plugins.