Many LDS bloggers such as myself have long wondered if and when the Church would ever address Church blogging in an 'official' capacity.

On December 15th, we now have the most 'official' statement on the matter to date (that I'm aware of...):  Here's a link to the LDS newsroom article on Elder Ballard's BYUH commencement statement, addressing "new media" and blogging specifically.

The key quotes from the news report:

“We cannot stand on the sidelines while others, including our critics, attempt to define what the Church teaches,” [Elder Ballard] said.

“While some conversations have audiences in the thousands or even millions, most are much, much smaller. But all conversations have an impact on those who participate in them. Perceptions of the Church are established one conversation at a time.”

Church leaders have publicly expressed concern that while much of the recent extensive news reporting on the Church has been balanced and accurate, some has been trivial, distorted or without context.

Elder Ballard said there were too many conversations going on about the Church for Church representatives to respond to each individually, and that Church leaders “can’t answer every question, satisfy every inquiry and respond to every inaccuracy that exists.”

Obviously the Internet isn't going away, and neither is discussion of the Church on the Internet.  Many bloggers have openly wondered whether the Church would take a stance against 'open' discussion of LDS issues online.  Elder Ballard's statement is, in many ways, the complete opposite.

Any official statement cautioning against Church members discussing Church topics on blogs (not that that was really likely--Church leaders aren't stupid...) would basically have removed the most faithful members from online discussion and left the least.  Surely, Elder Ballard (and all the other leaders) know this, and want to make sure that their side of any story or debate gets heard as well.

There is a place for online LDS discussion, even about 'controversial' issues (see original Waters of Mormon article here on the purpose and benefit of the Bloggernacle).   And even those concerned with 'liberal' or 'disaffected' LDS blog content can still serve a greater purpose by participating in the discussion rather than washing their hands of the LDS blog community altogether.