Michael Sheen might be Bond baddie Blofeld | Film | guardian.co.uk is the link you want, I think.
I'm a big fan of Michael Sheen's and I think he's very good at whatever he appears in. I very much enjoyed his performances in The Damned United, Frost/Nixon and The Queen. I'd certainly like to see him reprise the role of Tony Blair in some more British political dramas. I can't quite imagine him doing Blofeld, but I can certainly predict him doing a good job of it.
As for the return of Blofeld, I've only read Casino Royale and Diamonds are Forever so I'm not as clued up on Blofeld as perhaps I should be, but I'd certainly welcome the change. I think that Blofeld in the Daniel Craig era could be quite easily adapted and fit into the current Quantum saga and is something I'd certainly like to see.