Look, there are 2 aspects of blogging
1.commercial
2.non-commercial
I guess everyone knows why and how commercial blogging is popular
now the reason non-commercial blogging has gained popularity is b'coz it creates your online identity ...very much like social networks...(must have seen that social networks too have a blogging feature)
You personal online blog creates your online identity and help people get a refection of the person u are, things happening in your life and sometimes connects your with long distance friends.
We regularly keep a check on our friends blog ..and get an idea about their whereabouts .
This process slowly generates the feel of a community.. something that is the most important segment of social life 
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