According to The Blog Herald the blogosphere is currently made up of approximately 200 million blogs and counting. Obviously this is an rough guess but it is still an amazing figure. One thing to keep in mind though is that there is an enormous difference between the number of blogs in existence and the number of active blogs.
What is an active blog? A blog that is has been updated in the past... 24 hours?... Month? ..Year?
Once the definition of an active blog is determined, I would think Technorati or other blog search engines would have the most realistic statistics on the number of active blogs.