Both MineKey and RollSense let you feed in a list of blogs you like or respect, and then they create embeddable widgets that display items from those blogs that they think your readers will like. Based on what individuals click on, the list is further refined over time.
Many bloggers put a "blogroll," a list of other blogs they like, on the sidebars of their pages. Blogrolls help the bloggers who create them feel like they're in a club with writers they like. Reciprocal blogrolling makes everyone feel all warm and fuzzy. But blogrolls aren't very functional, since static lists of links quickly become invisible to readers.