Scott Kidder, an employee of Gawker Media, a former (his words, not mine) Weblogs Inc. competitor, asks: "How many blogs did AOL buy, exactly?"
I would say AOL wasn't exactly looking to buy blogs but was more interested in acquiring really smart people to show them how the game is played. Obviously blogs like Engadget and Autoblog help sweeten the deal (they make money) but I would hedge a bet that what AOL really wanted what they really paid money for was the intellectual capital contained within the walls at Weblogs, Inc.
AOL still has a lot of exclusive content and it's a major component of Time Warner's online media conglomerate. With the decline of AOL and seeming lack of a unified method for Time Warner to effectively manage their huge catalog of content online, It makes sense that they were looking for a way to improve their digital real estate in order to increase ad revenue and blogs are 'it'.
Of course I'm speculating but it seems odd to think that all AOL really bought was just a network of blogs. Then again maybe the You've-Got-Mail Glee Club was just looking to throw money at some web 2.0 buzzwords.