does it matter if you have a blog on .blogspot
 

im too lazy to make the change since i used their customized template, and its too much work to do it over...

do you think seo wise im fucked if i keep the blog on .blogspot?

the good thing is its free hosting

Yeah, get all you can :)

Read the fine print. google owns your blog. They can do whatever they want with it, including sell it or disconect it at any time for any reason.

Why build up somebody else's asset ? Get a domain for 5 or 10 bux a year and hosting for a few bux a month, it won't kill you.