I believe blogging is going to play a much greater role in the future of academics and educational institutions. The Information Age in which we live is moving us in the direction of a knowledge based economy. In this knew economy where information is created, shared, and re-mixed at the speed of light, consumers demand quality, up-to-date, relevant information, and they want it now! Professors that blog are moving in this direction and their students will recognize and appreciate it.
It's similar to the way computer companies have evolved their business model for developing new software. They realized 2 major things: (1) that people would rather have something to use in a Beta version than years of waiting for a product that ends up being buggy anyhow (2) the feedback they get while in Beta version enables them to make a better product more quickly. It is a move from the Microsoft model (wait 5 years for a substantial upgrade) to the Google model (perpetual upgrades).
A teacher that blogs is like a company moving from the Microsoft model to the Google model. The following is a great example of a college professor using a blog effectively in the field of higher education. Notice the rich media, large network of related blogs, and tons of resources, which makes this blog a jackpot for anyone interested in journalism. I'm sure her students appreciate it. Check it out here - http://mindymcadams.com/tojou/