Interesting concept. Since around October, I've been looking into publishing options for digital stuffs-to-book. I know that LuLu is really popular, but it's also completely HANDS-ON; i.e. there's not automation to it, you have to layout every page yourself.
I am finally finished with a photo book for a friend, and I made it through Blurb. As with any start-up, it's had it's things I really like and some stuff I didn't care for so much. But since I started work in late October, there've been 3 upgrades to the software, continually making it better. I'll definitely be posting thoughts and photos of the book when it shows up in a couple weeks, but overall I've been really happy with the service and am eager to start another book!
But with that, Blurb just released (a month or two ago) a "blog slurper" which is meant to do almost exactly what pyxlin seems to want to do: automatically create a hardbound book of your blog. I wonder what pyxlin will offer to make it different.