I’ll need to play around with it a bit, but that certainly sounds reasonable. I especially like the idea of the RSS feeds.
One thing…If an entire department is in one blog, won’t all of their posts run together? In other words, I make a post, then user 2 makes a post, user 2’s post would show up right after mine. After a dozen or so posts over the course of the day it would make it difficult to identify one users posts… unless (I suppose) each user had their own category…