According to the Pew Research People (Pew Internet & American Life Online Project) we computer owners are a busy bunch.
44% of those surveyed between March and May of 2003 that had online access contributed to online content.

Blogs still lagged far behind at 2 percent in 2003.
More recent data in 2004 brings weblogging up to 7%.
Special interest sites like church or a professional group also ranked at 7%.

Online content creators appear to break down into three distinct groups.

Power creators are the Internet users who are most enthusiastic about content-creating activities. They are young – their average age is 25 – and they are more likely than other kinds of creators do things like use instant messaging, play games, and download music. And they are the most likely group to be blogging.

Older creators have an average age of 58 and are experienced Internet users. They are highly educated, like sharing pictures, and are the most likely of the creator groups to have built their own Web sites. They are also the most likely to have used the Internet for genealogical research.

Content omnivores are among the heaviest overall users of the Internet. Most are employed. Most log on frequently and spend considerable time online doing a variety of activities. They are likely to have broadband connections at home. The average age of this group is 40.

The most web-based activity was posting pictures on the web.

(The pornography industry aside) what does posting pictures (21%) say about internet user-consumers/producers?

The blog data lines up with other studies with a few newer pieces of information:

Eleven percent of Internet users report visiting blogs written by others. And of these blog readers, a third report posting to or commenting on the blog entries that they have read.

Blog readers most frequently visit the online diaries of friends (56% have done so), strangers (46% have visited the blogs of people they have never met) and family members (a quarter report visiting family blogs).

Those of us who started blogging prior to last year, have an advantage. Although I don’t think of blogs as a market place, to me they are more a common space, and a jump of 5%/year is a lot of blogs in a short time.
I think it is harder for new bloggers to find their place that it was for those who started earlier.
I don’t think blogging has peaked yet.
I’m not at all surprised by the stranger visitor percentage.
I wonder how saturated sub-divisions of blogging can get?
I think there is a lot more room for good god-blogs, good blogs in any niche, but I wonder if newbies will need to push a bit harder to be heard. There are more tools to help the new blogger, but that isn’t going to build the kind of base and foundation earlier blogs had to work with.
I think those of us who have known the game is afoot for awhile need to continue to give newcomers a link and a shout up.

This data is all US based.
I think a lot more professional religious groups will jump on the blog bandwagon, and I don’t know how that is going to play out.
They have a lot of money to make a lot of noise with and more human resources.
ie: World Magazine blog which follows The Opinion Journal group blog concept.
Meantime, it appears non-US god-blogs are doing very well, and international god-bloggers may not be under some of the pressure for ‘audience’ (readership) that their US counter-parts are. I’m referring to english and non-english blogs.
Non-US (international) god-blogs that have been online and posting regularly for a year or more have seen a steady and consistent growth in traffic.
You may correct me if you think I’m way off base in my interpretations, hunches, declarations and predictions.:^)