I'm not too sure about what you mean when you say "alternative uses for blogs".
I think we have to distinguish between technologies to mange flows of information to and from the blogging platform, and the business model related to the information that is published on the blog itself.
You mentioned using Email to post info directly to the blog - I think there is a lot that will be done in this area in the near future to make blogging "invisibile" to the end user - only when a technology becomes invisibile it become widespread and accessible to the general public.
For instance I have not found tools that allow for seamless blogging. The only way I can get a post configured and published the way I want it is to logon and write my post. But then I have not looke too hard, maybe some has some suggestions in this respect !
If we then go down the business avenue all I can say is that I am experimenting along with many others finding the right combination of ideas and efforts to make business out of a blog ;-)
Sante