I think it should be allowed. Fairness aside (this is a crappy
reason by the way), there are other valid reasons (which is just my
opinion).
1. Acts as a communication tool. Some people are just idiots
when it comes to communicating face-to-face. However, if there's a
medium, they could do so very well. In this case, blogs could be
the medium.
Be it good criticism or bad criticism, this gives the teacher
something to reflect on and improve on.
2. As a way of knowing a student. Although teachers aren't the
kid's parent, but getting to know them would be a way to know if
they are in trouble or feeling troubled. If spotted early, help can
be rendered fast enough to prevent tragedies.
Of course... with troublesome students... the teachers can find
a way to workaround him/her... and if lucky could find out why
he/she behaves in a certain way...
If the blogging platform is used in a positive manner, I don't
see why not. But if it's not, the students might as well keep their
own private diary.