Thanks Kymmy for the prompt feedback.
It would not be hard to hide the image inputs (you could do this now by editing write.php), but I am not sure how an auto-thumbnail system would work, please feel free to elaborate.
What extra BBCODE tags would you find useful? I initially chose yvBBCode as it was easily to get working, there is no reason why I cannot customise it or change to another plugin if the demand is there.
The textarea definitely should be more than 2 lines high, what browser are you using? I have only tested in FireFox and Opera but will try IE when I can get my hands on it. According to this page (http://www.w3schools.com/TAGS/tag_textarea.asp) adding a rows attribute should work (try rows='20').
So as you know it is currently very basic, but now that the foundations are there I hope to rapidly release incremental updates.