Pages - really? This is a word processing package so no blog option or anything similar and you would still have to use iWeb anyway - you can use a Pages template that you like, but it would still mean the same thing, that you would have to use iWeb to create the site, so nothing different there at all.
It can't be done. So you either need to look at investing in a new application likeEverWeb or you create a blog that is like the website using something like WordPress.org or WordPress.com and rather than linking to it you can still have the blog as part of your site, but you can put it on the site as an iFrame within an html snippet instead. That way, you have no external link on your site at all.
Also, I have to say that if you take a look at EverWeb, you will be right at home and you will not need to learn any new skill set - it was designed with old iWeb user's in mind to be like iWeb in look and feel, but you can do a lot more right out of the box than you ever could in iWeb - for instance, drop down menus, a contact form widget and lots more.
Take a look atEverWeb by clicking on the links.