Not sure if this is the best place for this - feel free to move it if necessary.
While reading a diary by Maryscott O'Connor on DailyKos about the recent changes to his blogroll (yes, she got bumped), I had a flash of inspiration (might want to stand back a bit, there, these things are dangerous) and came up with the idea of an automated community blogroll. Basically, every time someone posts a link in a blog entry, the module would snag the domain name and add it to the database or if it already exists, add points to its entry. As more people linked to it, it'd climb up the list and appear in a larger font (like tag lists on some sites), thus gaining in prominence.
That'd be a truly democratic and merit-based way to handle a blogroll. Those who post the best content get linked to more often and thus climb up the list. Also, if you wanted, posts could be weighted by user role, so a site linked by the site admin would get 3 points, a regular front-pager would rate 2 points, and a regular user would get 1 point. Other useful features would be the ability to manually add certain blogs and sticky those to the top of the list (say, the admin's favorite sites), and the ability to exclude a list of sites (major news sites, image hosting sites, blogs that have been banned for spamming, etc.).