If you’re interested in the use of blogs for developing communities then you might be interested in what I just posted over at Blogsavvy: Cityblogs – WPMU & developing blogging communities based on physical / spatial relationships.
Basically it involves, in the first instance, trying to set up Melbourne Blogs, Sydney Blogs, Brisbane Blogs, London Blogs and New York Blogs using WPMU.
Have a look and tell me if I’m dreaming :o)