Blog & Website - do we still need this differentiation?

With blogs and blogging software making such a substantial progress over last years it became difficult to distinguish modern blog from a website, and vice-versa.

Of course, in essence each blog is a website indeed, but the purpose used to be different. However, today it seems that each website should have a supporting blog, while each blog should provide more than traditional two-column divided information. Today I see many web venues combines these functions in one medium.

From other side I see leading blogging platforms, such as Blogger and Wordpress provide more and more website features for their blogs, including design and structure customization, dynamic elements and many other features making it really easy to create almost full functioning website on the basis of your blog. You can create customized design, add flash elements and pages, so when thinking about establishing your web presence you have a very viable alternative to full-featured coding website. You can pick a unique domain name as well.

That said, I'm thinking of why do we need to this division anymore? And what is your forecast for the future of blogging and blogging software? Will we see CMS for blogs? or maybe anything else?