Coming from someone who used Blender with UDK, thankfully yes, that has changed a lot. I’d say it’s not perfect but recent versions of Blender have done a lot to improve fbx export to UE4 (morph targets work, problems with sizing and animation are becoming far less common, etc.).
Also, there appears to be some effort from the Unreal staff to consider Blender as a viable 3D graphics suite for asset creation (someone who is actually from the staff could speak for that better than myself though).
And, all that being said, good ol’ Max and Maya are great too.
Cheers,
-Noah