Should PR agencies be using blogs?

A couple of weeks ago I was having coffee with Kris Thykier ("PR guru") from Freuds. Smart and charming, and surprisingly honest about some of the issues that PR agencies are having with the digital channel and in particular blogs. He had lots of questions - should PR agencies manage their clients blogs (me: no), are PR agencies responsible for monitoring blog chatter about brands, people and companies (me: yes, but they should not be the only ones - if brands/people/companies are taking this channel seriously they should want to be plugged in, aware of blogging conversations and responsive to them)
There's a new report which says that although over 80% of PR professionals accept the critical nature of blogs, about 30% are actually doing very much in this area. I'm not sure that Mark Cuban or Bob Lutz started blogging because of the advice of their PR agency. The worry is that as blogging becomes more mainstream and more companies start to decide that they need blogs, they will simply start to out-source their blogs, getting copy written by up for them by professional copy-writers, fact checked and then subject to senior management approval. This would turn it into some dire digital corporate advertorial.
Russell has posted some thoughts on corporate blogging that generated a lot of good discussion about the importance of honesty and authenticity in blogs. It would be dreadful to start losing this so soon. Since that posting Naked Conversations has been published, if you blog none of this will be new news but its engagingly written and their blog is a good one to get involved with.

Which are the PR agencies that are really connecting well with the blogging community?