E.N.
Hi M.!
My husband and I set up one for our son when he was born, and it's been a HUGE hit. All grandparents live in other states, plus we have very large extended families. We were having the same problem, everyone wanted individual news and photos, usually via email or phone. The blog has completely eliminated that. The only thing is that if I don't update it regularly, I get some complaints. So I just spend several hours once ever few weeks and add a BUNCH of new stuff, to last for a while.
We use a blog through GoDaddy.com, but it's complicated so I wouldn't recommend it. I've heard great reviews on Blogspot.com. :)