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Thumblogger has wordpress templates and other completely editable templates. I have seen users do some wicked things with the stuff at thumblogger, some of the blogs i trade with i wouldv'e never guessed they were free hosted at all and it also allows you to add and remove and arrange boxes and everything is fully editable. It is the free hosted blog i use and reccomend.
It also has it's own image host which allows you to host your own images free also. Only advertising they do is a topbar that is smaller than my browsers address bar. They also have an affiliate program it doesn't pay cash but it gets you prizes like top listing in a blog directory for the week and other things like that and they have their own support forum.
Damn after reading what i wrote i should be getting paid for promoting them lol.
some of the not user friendly hosts IMHO are pimpsblogger.com, xlogz.com, blogger.com, and blogbugs.com, that is just my honest opinion though. their controls, adspace, and content allowed just do not suit my needs.
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