Any company that is deciding whether to use a website or a blog is wasting its time. Why should a company limit itself to one or the other? Websites might be a little harder to update and maintain, but they offer a very good service to any business. Blogs may not be as hard to update, but they provide a more dynamic form of communicating to the rest of the world.
Websites can be designed with a forum section in them. A company should use a CMS (content management system). This allows anyone interested in your website to get updates when you update. When people see something they like they can reply on your forum. Or if they see something they don't like. This provides great feedback for any business.
Blogs can have and should have links to a company's website. When people link a proffesional blog back to thier website it can have a compounding impact on business. Discussion can be given on products and services in a different setting with blogs. Blogs aslo have a form of keeping poeple updated, by using RSS (really simple syndication) links. Which works pretty much the same way a CMS does.
Limiting a company by using either a blog or website would be foolish. It would be the same as only using one form of advertising. Using a website and blog together is an ultimate duo for any company.
Sources:(http://www.problogger.net/what-is-rss/)
(http://www.search-this.com/2007/05/16/an-end-to-the-website-versus-blogs-debate/)
(http://workingathomeinternet.com/WP/2008/05/20/the-best-of-both-worlds-blog-and-website/)
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Your point that companies should not limit themselves to just a blog, or just a website is a valid one. On my own blog I recently posted something Rich Brooks, a web designer and business blogger, said "Your Web site is your portfolio; it's the best of what you have to offer and displays your business as you want the world to see it. A blog, on the other hand, is more an ongoing conversation you have with prospects and clients. It can help you establish yourself as an expert, post information quickly, and differentiate yourself from the competition." Someday though, I believe that the blog and the website will be melded together, and the separate blog will no longer be necessary.
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