It is not about increasing the target blog PageRank, but rather on preserving the correct URLs. By loading the target content on an IFRAME and distributing their own URL, the target content will appear in search engines as belonging to Digg AND the target site.
Preserving the correct URLs is a lost cause - tinyurl and services of that ilk make it all but impossible.
With regards to content appearing in search engines as belonging to both, have you bothered to check or are you making assumptions? Seems to me (from a test on some of the latest Digg stories) that the original author is ranked for his/her post, but Digg is not within the first 5 or so pages. Furthermore, even when appending "digg" to the search term, only the link to the story summary is shown and not the toolbar-clad page.
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[ 3.1 ms ] story [ 27.9 ms ] threadWith regards to content appearing in search engines as belonging to both, have you bothered to check or are you making assumptions? Seems to me (from a test on some of the latest Digg stories) that the original author is ranked for his/her post, but Digg is not within the first 5 or so pages. Furthermore, even when appending "digg" to the search term, only the link to the story summary is shown and not the toolbar-clad page.