Making Your Blog a Sub-Domain of Your Site - Yes or No?

I have my blog hosted on blogger.com. Blogger offer a facility whereby you can re-locate the address of your blog from the default site (in my case, WaveCrestIT.blogspot.com) to a sub-address of your existing domain name, a sub-domain, ie blog.WaveCrestIT.co.uk. 

Currently, due to some diligent posting on my part, I am getting more hits on my blog than on the main page on my website. Not only that, but I have set up my blog so that it strongly resembles the look and feel of my main website and has the same call-to-action functionality. I also have a summary of the text from my website's main page in a side-bar on the blog and plan to completely integrate my blog into the site as a whole.

My question is this: Would it be better, with respect to search engine optimisation and other factors, to dispense with my current main page entirely (it is overly wordy) and just have the main domain (ie. www.WaveCrestIT.co.uk) point straight to the main page of the blog? The blog is not hosted on my site, it is hosted on blogger.com. Will this have any negative impact on the subsidiary pages of the site (which are hosted in my own space) or on the blog itself?

I have done some research into this but could only find articles on related issues and none that dealt with the question directly. Some of the more useful links are listed below:

• Blog or Website? Which Do You Need?
  An article on the difference between using a blog as your website and a more traditional, or static, model.
• Should I separate my blog from my website or keep them together?
  Really, what it says on the tin. A short article on the pros and cons of keeping your blog separate or integrating it into your main site.
• Should My Blog Go In the Root of My Company Website?
  A more technical article on whether an integrated blog should be placed in a folder off the main domain (ie. www.WaveCrestIT.co.uk/blog) or in a sub-domain as above.
• Which is best for blog SEO: separate domain, subdomain or subfolder?
  This is a more in-depth, technical article on the pros and cons of integrating your blog into your site.
• What If the Blog Outranks the Company Website?
  This article discusses some of the SEO implications of integrating your blog into your site. Fortunately, the news seems to be mainly good.
• Should You Have Keywords in Your Domain Name?
  Again, this short article discusses the topic in the title. It takes the opinion that domain or sub-domain keywords are relatively unimportant compared to content.
• Blogger: how to use a www custom domain for your blog
  Read here for an in depth description of how to re-locate a Blogger blog to a sub-domain. Some of the comments are particularly useful.
• Add a Domain — Support — WordPress.com
  Not strictly on topic, this article makes some good points about how using a sub-domain is part of moving from a free, hosted blog to a fully independent web strategy.
• Tracking Multiple Domains - Google Analytics — Google Developers
  Also not strictly relevant, these pages describes how to use Google Analytics across more than one domain or sub-domain.

Please respond, comment or make suggestions for further research below.

[Edit: 25/09/2012 15:15 : I am also thinking about integrating my blog and Facebook posts on my site via RSS. Any comments or suggestions as to how that might work, in conjunction with the above? ]