I run a fairly expensive setup, but then I'm in this for the long haul.
Audio Interface:
Microphone:
And I record in Adobe Audition. Though I have Audacity as well. Part of my sound is good gear, part of it is editing, and part is just natural voice. Especially when you settle on a group of settings in Audition or Audacity that really suits your voice.
I don't have a problem with the Blue Yeti itself. It's a decent mic for the money. Problem is limitations. I prefer XLR mics, and once you have a passable XLR interface (Tascam, M-Audio, etc.) you're all set and have a wide range of choice. If you want USB, you're stuck with a very limited offering.
Spend $100 on an audio interface (M-Audio Fast Track) and the world of microphones opens up.