Indeed, it's a damn shame. That alone would fix it tenfold, I reckon. I mentioned how it changes scenes and the dialogue structure and that would be ironed out with well-spaced paragraphs.
I write with blogspot directly into its editor, but it likes to kill my paragraphs when I copy through stories. I think it doesn't like the "double-space" paragraphs or paragraph marks.
It's fine with line breaks though. So I guess you have to learn those tricks. Like how it hates tab markers. But pressing space a few times does the same thing.
Even though it's a pain in the arse . . .