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Via Scoble I found this article on the PR biz, and how blogging impacts it. Interesting read:

Public Relations is about communicating with audiences. Your job is to understand how to reach those audiences, how to deliver information to those audiences in a format that they find acceptable. We're not just talking about the media here. PR is about good communication to every audience, that includes customers, partners, staff, suppliers etc.

If you are not trying to reach and communicate with the relevant audiences for your organization or client, then in my humble opinion you're not doing you job.

This puts blogging in the proper light - it's not the solution for corporate communications, it's a solution. It doesn't replace anything completely, but it does add to the list of communication forms.