Do you wonder about authors that do this? I know putting a story in a blog is self-published and not eligible to post elsewhere, like in e-zines, but what about stories that have been published and the rights have reverted back to the author?
Or, just for amusement on the blog? I read about an author doing that and it makes me want to read his blog for the stories, to see his style, and to read. (I think all writers love to read.)
Blogging is about a platform, and what better than to sporadically season with your own fictional work? Heavily edited, of course, and preferably by someone other than the author.
I’ve noticed as I work in critique groups how many times I can read the same passage and not see the problem with it until someone else says, “Really? I’d fix that.” Of course, I do the same thing right back, so we’re even.
Ransom Noble 
I have blogged the occasional flash story. Mostly little stories that would be impossible to find a home for once the original market rejected them. It is kind of freeing to do so.
It can be an interesting topic. What I wonder more is how the podcasting of books works since some of the ones that get offered for free are later picked up by publishing companies.
What I like about the idea of some story posts in blogs is that it can give the readers a free bit. People like free, lol. It’s more about giving a taste of what the person offers, and can be good for promoting other, published work.