There's an interesting interview with Evan Williams, founder of Blogger, at C/Net. We keep asking at Blogger Forum "where is Blogger going?" This might provide a little insight:
Q: What would be a sensible way to blend blogging in with the functions of a search engine?
A: We're not really focused on that. We're pretty heads-down in making Blogger a better publishing platform. Most things published through Web logs and Blogger get into Google; there's sort of a free integration there by virtue of Google's goal to search the whole Web.
Over the last four years, since we started Blogger, there's been a tremendous amount of development on the publishing side. There's not been as much progress on the reading and finding-stuff side. That's Google's forte. That's where we see we can add value to the Web log world--helping people find good stuff--hopefully with Google's technology.