In defense of Matt and Dougal:
Weblogs _is_ unreliable. And depending on the way in which you call update_links.php, that may or may not be a problem. If you have set up a cron job, then no worries, but if you have the old links updater plugin installed, and your blog is waiting for weblogs.com before it loads, then timing out, etc. can become a big problem.
Blo.gs is another option, that seems much more reliable. However, they have stopped using the changes.xml type service, in favor of a streaming service. This makes it much more difficult for a program like WordPress to get updates from such a service. It would be better if such a service was first parsed by a server such as Ping-O-Matic, then accessed by WordPress users as needed.
That said, I agree that Matt, Dougal, et al. should provide a clear timeline as to when Ping-O-Matic will implement this.
I am currently working on a plugin that will parse an RSS feed of favorites and use it to update links on your blogroll. It is designed to work with blo.gs favorites, and it will use the LastRSS library, including cache functions. This will allow it to be run using a hook every time the page loads without overloading the blo.gs server. I am not a programmer by any means, but if/when I am able to get this fully functional, I will make it known on this forum.