I posted about this before, but not concerning a wholesale replacement of your blocks with tool palettes.
If you have a large library of your own details and blocks, you can convert entire folders at a time to tool palettes by using the Design Center:
1. Press CTRL+3 to open the tool palette (if not already open)
2. Now open up the Design Center using CTRL+2
3. Navigate to the folder where you have the blocks you want added to the palette
4. Right-click on the folder and pick Create Tool Palette
Repeat as necessary
This will create a palette named after the folder you selected and containing all the blocks in that folder.
See this post for more general details
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