According to this article entitled, Busy Blogosphere Gets Hype, Not Readers, most of us do not know what blogs are, nor is the general public engaged by them.
This finding corresponds with my own discussions with businesses and individuals. While there is no doubting the enthusiasm of those already within the Blogosphere, those less familiar with innovative tech have skepticism about whether blogging is an earth-shaking innovation in communications, or digital narcissism.
Blogging is making a difference. It's forcing developers to learn and adopt web standards, and stay ahead of the curve. The adoption of RSS is a direct result of blogging's popularity. I would argue that RSS is a must-have component of a web strategy in 2005.
I'll stay on this topic, and take a closer look at the PEW Internet study the article mentions.