Blogging is two way digital paper (a concept I first heard from Patrick Delaney) ; it can be journalism (gonzo or 'normal'). It can also be a diary or a journal. It can also be a marketing tool. It can be a support tool. It can be a 1000 things.
You're right, blogging's not "subjective journalism," per se. Blogging is gonzo journalism, where who we are, what we are, and what we care about is as much a part of the story as what we are writing about. And, of course, the same is true in so-called objective journalism, except the belief system and perspective that underlies the purported objectivity is implicit, and therefore cannot be addressed directly.
More importantly, the editorial agenda of the traditional media -- what has made modern journalism such a potent force -- is all about deciding what is important and how much of the front page or the news hour to devote to it.
The world of blogging brings these decisions back to the individual, based on the personal balancing of trusted voices. Each of us can decide what issues are most critical, how to apportion our attention to the affairs of the day, and which memes are worthy of follow-up. We are taking the remote control out of the hands of the editors, and they don't like it. It will eat into their advertising, big time. It is no wonder, given what is at stake, that the established priesthood will rail from their pulpits, and make light of what is a truly profound power shift in the making.