Looking at the most recent version of the app, the team at what became CoverItLive has clearly been working on both the look and the functionality. As Rafe notes, the software makes it easy for someone covering a live event — such as CES or an election, for example — to host a live chat, poll the readers in almost real-time, embed video and so on. Once the event is over, the entire session is saved and can be replayed, as you can see with CrunchGear’s live-blog of Bill Gates.
If I were live-blogging something, I would certainly consider using CoverItLive. The last time I did it, for a panel during the Online News Association conference last fall, I used a BlackBerry — not something I would recommend 🙂