The earlier argument was that it lead to a lot of links. I used to agree – before. Nowadays, it seems like getting Dugg leads to no/very little linkage. That is if your story has made it – in the last 10 days we have had four pages/sites Dugg indirectly – our own submission was buried, but a site like Lifehacker or News.com (that just linked/regurgitated what we said) made it through.
So – if the traffic is useless, and its ability to generate links is weakened – why would anyone want to buy Digg?
Something to chew on.