I think this is such a great idea because you have the ability to share a more personal side of your organization with non-members. And really, what's more important - listing off facts and awards, or telling people about the MEMBERS that make up your organization?
There was a great blog post on Phired Up about replacing chapter websites with blogs, here:
http://www.phiredup.com/index.php?op...p=581&Itemid=2. It linked to ASU Alpha Gamma Delta's blog, which I think is excellent, here:
http://asuagddeltaxi.blogspot.com/