Blog valuation is the combined total of the incoming links. The incoming link values are the outgoing link values of those blogs. Generally, the higher the value of a blog, the greater it's outgoing link value. At least, that's how it used to be...
Under the new math, this is still generally true, but some blogs put out more value than other, higher valued blogs. This is one of the interesting twists in the new math. I'm investigating some examples of this.