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The idea is actually pretty good, but I don't know about the vastness of its implementation. I mean, does it really make sense to restrict people to something like 500 words per entry? On the other hand, if you do not do so, there could be space problems. So how do you go about it when the no. of users are these much?
Well like I said, they're not "blogs" in the conventional sense, more like bigger microblogs (typical microblogs range from somewhere like 20-25 words per entry). To install actual blogs for every member is pretty implausible for such a large forum.