Adafruit's USBtinyISP programmer has a jumper to supply 5V to the target or not. When the jumper is not in place, no power is supplied, and the logic levels are shifted to match the target's supply. I've used one to program target boards operating at 3V and 3.3V, but not 1.8V, so I'm not 100% sure that it will work. I do think I'd stick to ICSP programming and forget the bootloader.
I don't want to add line level conversion to the circuit if I can help it! Is there an alternative/standard/simple way to bootload/program?