If you really want someone else to deal with the hosting, that seems to be a better option. Mostly because they have support available that you just won't find for Blogger.

But it seems to me once I get to the point of paying for the blog, I might as well pay for hosting instead. And once I do that I can install WordPress and self-host. Whether that's a good thing or bad depends on how you feel about added control vs. added responsibility.

If you know that someone else -- anyone else -- will do a better job of maintaining and backing up your system than you would do yourself, you might be better paying for TypePad. If you're already paying for hosting, then you've got more flexibility and control with WordPress.

Oh, and if you host on TypePad (or Blogger or WordPress.com) you don't have to worry about traffic when you get Dugg.