You could use it as a local news site (each reporter or topic could have a blog, strung together by a fancy homepage), a place where you can personally keep several blogs on different topics(and aggregate them together at your homepage), a community discussion site (where everyone had their own soapbox!) or a fanzine for your favorite sports club.
You get to decide who can and cant have blogs, moderate content, add in users and generally run the show - it's your blogging community and you pull the strings.
Supporters and supporetr sites have access t0o an array of amazing plugins that add great extra widgets, features and functionality to every blog.This seem quite awesome for a free service. The ability to run a blog community while using the powerful wordpress system. A must for anyone looking to setup a blog community!