I still haven’t seen the concept executed in a clean and useful fashion for the reading audience. In the meantime, blog content aggregators and syndication services keep on garnering a hungry audience. Sad…really sad.

A) It makes blogging faster.
B) Link love builds traffic.

Search engines put weight on your traffic and assign your site a value and ranking. By building relevant links into your blog posts google pics up on that. Add to that the fact that not only are the links relevant but the links you chose to use were from high traffic threads it helps your blog even more. Add to that when you set those high traffic links in your blog as trackback URL’s then you get added to this posts trackbacks. My blog has gotten a few hits because I trackbacked this very article.

Just a quick google search and this article can help elaborate:
http://www.prob...s-of-link-love/

You ask: Why would I want to send traffic outside my blog?

It builds trust, people appreciate you sharing tidbits of knowledge.

The scenario is that most likely the links you place inside your blog post will not get clicked until after they finish reading your entry. they came to ypur page in the first place to read your blog. Secondly the related articles are at the bottom of your entry. Lets say I have 5 readers of my recent post. Great! Lets say those 5 readers click out of my post to a link or related article I included but I tracked back to the article here. So I sent 5 people to techcrunch… but the trackback in their more populated article might send me 10 new visitors. The original 5 appreciate that I can point them towards information that is useful and relevant to them. So now you have built, trust, loyalty, acquired new readers, and shared some link love with a site that might recognize you and link to you in bigger ways.