That looks interesting.
What I do right now: I have a blog and a less-frequently-updated journal. I keep an announcement list and send out a notify manually for the journal when I post an update, but not for the blog. Most of the readers of the blog access it through Bloglines or Newsgator, and a handful of people seem to access my journal that way, too. This is the first time I've heard of a service that will email automatically, though.