At first I thought of exploiting Blogger itself, but sending regular pings to their Save as Draft address with the post details, but unfortunately that didn't work, since I ended up tons of saved drafts. Apparently Blogger doesn't do a del.icio.us, i.e. look for an existing post with the posted details and overwrite that one. So, I needed a local solution. My recent trysts with greasemonkey is making me do weird things with it. Though this was supposed to be just for me, I thought "Oh well! What the heck!"
The script auto saves your posts content every 30 characters entered. This means that you will lose your old post if you write 30 characters of your new post, since the script will overwrite the previous posts content with the new content. This will add a Return Data link which you can use to retrieve your post. So no more getting worried about losing your posts! :)
Thanks to Shikha for giving it a small initial test ride and the feedback to give it a final tweak! :) Hope you guys enjoy it too!
[Update]: Using the Bon Echo pre-release tester for a couple of weeks now, I've realized that the in-built session saver saves text-area content and forms as well. That feature makes this a little redundant, but this can be further extended now that the basic functionality has been established! :)