I must say that I agree with your analysis of blogs. They are still new on the block to some extent even through blogging tools have been around on the Internet for some time.
My own experience came recently at lunch with a couple old friends. I wanted to see what they thought of a business idea I had that would take advantage of blogging as one means of marketing. Unfortunately I had to explain the concept of blogs to both who are fairly well educated and intelligent people.
My other "bad" experience is a site that I run. I created a method for members to post their own blogs as a tool to help them get more exposure for their photography and artwork via the search engines. It is to allows them to go into detail on their artwork, their inspiration and so on. The site gets decent traffic and a lot of participation by members but the blog section still sounds like crickets chirping. The concept worked to since those few blogs created so far have been spidered by the search engines but it was not even until I changed the wording in the links to that section from "Blogs" to "Articles" that a trickling of people started to take advantage of the tool.
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