Halstead's goal was to build a site that lets a much wider audience -- one that doesn't understand things like RSS or multiple windows -- access the millions of blogs on every topic known to man, and some unknown to anyone but the handful of people who share them.
Halstead started with a call to the community for the top 10,000 blogs. More get added over time, but only if the community accepts them. The community also re-categorizes and retags blogs as they wish. The other cool feature is the ability to comment on blogs from within fav.or.it -- that is, you don't have to go to the blogs specifically to comment.
Fav.or.it started life more than a year ago, but was originally built for other purposes. The site's only been up (and is in beta) for a few weeks. Let's see if it can unseat some of the established players.