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http://blog.rogerkondrat.com/ -
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http://www.techwinter.com/2006/09/05/splogs-how-false-user-numbers-contribute-to-the-problem/ -
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Interesting theory on how abandoned blogs can suffer from spam and thus boost the unscrupulous blogger's pingback count, and aid their ranking.
It would be difficult to manage the "dead" blogs queue - how long would you give it before you announced a blog to be defunct? A month? A year?
But I agree that all this dross can lead to a false impression, both in the number of blogs a service provider hosts (which may or may not be active) and pingback fraud - a bit like shill bidding on eBay.