I've done it without any problem. You just need to remember that every time you put a carriage return in the text, it inserts a <br> tag (just like in the regular update form on the LJ website).

Those functions aren't built-in, to my knowledge. The way I read your post was whether it was possible to put the HTML in, not as a feature enquiry/request. Sorry.

It's all good.

Good idea. Open a bug/request for enhancement at http://bugs.warped.com and I (or someone else hopefully) will writing the necessary code.

sirtwist has it right. There's no built-in feature for bulleted (or numbered) lists in iJournal, but you can do the HTML by hand.