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Why waste the time installing Blog software ... when I can easily create a page for individual blogs???
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Installing blog takes less than 5 minutes, and you do not have to do anything again.
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can abviously upgrade space later on as required, can't I? Suppose there is a scenario when I have to switch webhosts.... will there be complications in that case???
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Although changing host is little complicated specially for database driven site. Also chances are you may loose some data, while moving. In case of blogs comments which will be posted while you are moving.
You may ask for help from you new host for that. Or better read tuxfan blog he has some useful info on that.