The general idea seems to be splogging as a service - that is they are offering as a service (a paid service, to be exact) the ability to register a subdomain of FeedBlitz in which you can syndicate your existing content to a customizable page, or pretty much the same thing you can do on any number of free webhosting solutions, but for $9.99 a month.
Instead of simply realizing somewhere along the way that this was a sort of silly idea to ask people to pay for, FeedBlitz has gone pro-active and started direct mailing content producers like Jason, encouraging them to sign up:
I feel secure though, because I received an email from FeedBlitz letting me know about this new service, and telling me that they've taken the time to reserve three possible subdomains for me that I might want on their site. And as long as I pay for them by August 10th, I don't have to worry about the teeming hordes of internet bad guys out there that are looking to steal them out from under me. Uh, right.
So what we're looking at is the implication that they're creating a site for you, possibly with your content, and if you don't buy the service, someone else will.