Blogger provides a free hosting service in the form of Blogspot. They used to put a single banner ad at the top of the page but eventually settled for the navbar. Many bloggers dislike the navbar and either modify it or delete it. Blogger says:
We consider it a violation of the terms to modify the Blogger navbar.(source)
(Via A Consuming Experience).
In the Blogger Help Group I often come across this issue. While I haven't heard of blogs being deleted over this I still think bloggers should leave the navbar alone.