Hmmm, I thinky much higher. It has very high branding potential and blogging is hot. It is easy to remember and a single word; Low to mid XXXX to the right end user, IMO.
Napster, Dotster, etc. - there is a precedent for this type name, and the branding opportunity is very strong. I'm going to resist putting a dollar value on it, but it's definitely got excellent potential. A very cool name, one that I would be happy to own.
Name alone, a very mininum of $1,200.00. Develop a site for it (which could be easy with a blog) and I would say you will command a pricetag of over 5 grand as long as it has a professional and intuitive pressence for multiple members. Get more traffic and it is worth more.
I think this is a valuable name because it is short, includes THE keyword, and represents its own brand. Loads of potential for a killer site. Nice 'un.
I'm assuming it is his/hers if that's the O.P's username and the domain he's asking for to be appraised. Hard for me to give you an apprasial, but I'd say defintiely in the $xx,xxx range.
All I know is that it's a huge site...all over the net. It's used by many people within their own websites (illegally, with frames) that's how popular it is. Was member "blogster" the owner, or the buyer?
Whichever, I'm sure he's in good shape either way.