Since then, I've been pointed to the this blog that shows easy syntax highlighting for blogger. This has several strengths over Google's version that I described. In addition to solving the two problems above, it also offers a great "copy" feature: after hovering over a code section, links appear allowing viewers to copy everything, view the code separately, or even print it!
Here's an example of code highlighted the new way:
All in all, I will keep the previous blog the way it was but, going forward, I'm using the awesome highlighting, instead of Google's! As far as formatting is concerned, I'm still testing different external blog tools. The next part will cover the one I chose and why.