Ok, the way I see it is....
Squidoo is all about spreading the word of personal recommendations / word-of-mouth phenomena throughout the web, and making it easy for you do to so. It is multi-dimensional and a community-builder, unlike most blogs that are one-sided.
It differs from a blog because it`s about connecting with others who have like minded interests, sharing your common information, spreading the word and even getting to make money out of it. Simply put, it`s about building a buzz about your given topic, rather than just having a place for you to talk about it (like a blog) and hope that people see it.
Squidoo puts all of the word-of-mouth web tools easily at your disposal, in one place (on your lens) like You Tube, Delicious, Amazon, Flick`r, etc. When these sites all start linking to eachother, and other users "hear" about it via personal recommendations, a real community is born about the topic at hand. It`s all about creating a community, whose word adds value to your product.
For more info read this great article:Spreading the Brand Message One Community at a Timeby Richard Buck