Vanilla is a product of Lussumo:
Documentation and Support.
working not so much as a weapon to direct public thought but as logistics through which people can direct their own actions and communicate
This is something that there will always be a market for. "Citizen-journalism" blogs do a great job of getting you a man-on-the-street perspective, but they often don't have institutional memory, don't have an editor, and aren't as accountable for what they're saying. Blogs aren't destroying traditional journalism, IMO -- they're a just new market for information.
Blogging is not journalism, but it does help journalists (particularly lazy journalists) to find the things that are worth writing about. And, of course, provide video and photos of spontaneous events as they happen (e.g. 7/7 bombings).
don't think you can be as sweeping as saying that blogging is not journalism. There's some fine journalism out there on the web, it's just that the writers have, for one reason or another, chosen/been forced to present their journalism through blogs.