It appears that Google just bought Pyra Labs. Pyra is the company that does Blogger.com. I'm sure Evan will have something to say about it soon. It's an interesting direction for them to go in. But I'm not quite sure that I completely get the motivation behind it.
One part of it may be that blogs are starting to become a good place to get information. I have a few blogs I check for news on specific subjects (Wi-Fi News for example). Having a direct feed into a portion of the blogging world would get more people going to Google for information.