Yes, we do in the KingBloom Directory. Just about every category and subcategory has a "WebBlogs and Blogs" cat.
Yes, I do in the directory in my signature. But only if it's a clean site (not spammy or adult, gambling related).
Yep, we accept them as well. There are a ton of weightloss blogs out there and we've got it set up to get them some traffic
Yes I do at http://www.bloglookup.com/ . I just started this because I love the domain name. I will however be screening the submissions. -Quade
Listing blogs with quality content would be a great addition to any directory as a subcategory or in one of it's own. Use the same standards that you apply to all of your submissions - list the good stuff and delete the crap.
If it has quality content, for sure. Blogs tend to have more fresh content which I prefer. Blog submissions which I tend to delete are those which are just starting out, with very little content and/or scraped content just looking for linkage.