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My thoughts are if your site already has some "name recognition" then you should use the mydomain.com/blog format. For instance, everyone already knows link-o-rama, so if greenguy was gonna start a blog he should use link-o-rama.com/blog
He's not gonna start greenguysblog.com......well he could, but people already know LOR. (lord of the rings? LOL)
Actually greenguy is kind of a bad example because greenguy.com is not his domain name and people are used to knowing him under unmatching domain names. LOL But you get the jist of what I mean.
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