I am using the new blog template plugin and allow users to select a template on registration.
The one small issue I am having is that when the user reaches this screen the default template is not automatically selected by default when the user reaches the screen. the user then is not sure how to proceed i.e. they are unsure that they actually have to click on one of the templates to select it.
Not sure if it makes a difference but I use the screenshot with description option for users to select their template.