Blog at homepage or in .com/blog/ folder? Your thoughts?

[Holistic Star]

When setting up a blog what do you think are the benefits of having the blog on the index page as opposed to having it a folder.

e.g. steve's blog is at www.stevepavlina.com/blog/
and www.stevepavlina.com is his welcome page

whereas other blogs I have seen are at the index page. e.g. at www.<namehere>.com and then they have an About page explaining about themselves. www.<namehere>.com/about.htm

The reason I am askin is that I have set up my new blog at the index page, however I'm thinking about shifting it to a /blog/ folder and having some welcome info and video clips on my homepage.

2 questions:
1) What are your experiences of the difference?
2) Given that I've already set it up, will it be difficult to make the switch. Im using bluehose and wordpress.