Here is a new app that has a lot of potential if you prefer a more "newspaper-like" blog reading experience. It's called Early Edition and sells for $4.99. There are a few bugs/issues that need to be worked out, but a very nice initial effort that takes advantage of things the iPad does well.
Sorry for the low light iPhone video, but at least you'll will get the idea of this app.
Update: Bug regarding Posterous feeds has been fixed!