It's something that's on my "to do" list but I haven't got around to yet. In our customer sites we don't see the embedding get a huge amount of traction. Instead people ask for APIs to do their own thing, so we've added the JSON and Web Services APIs for IQJam to allow them to do just that.

My plan for the blog widgets would be to make use of the JSON API and wrap it into something that does a simple AJAX request and formats the results into something pleasant.

Matt