The problem is that 'domainers' tend to see things from the perspective of domaining! The general public are not concerned whether or not there is a suffix .gs, as long as when they have seen it they can type it in and hey presto a blogging site appears.
The way to look at it is this is a domaining site populated by domainers, now how many of us drive cars? Well over half I would imagine. If you see an advert saying that 'product X' when added to your fuel tank will give you 100% more miles per gallon and it costs a fraction of the cost of the fuel then some of us will try it. If it works word will spread, and guess what we will all buy product X and add it to our fuel tanks. Only a very few of us might understand or even want to know the chemistry/physics behind product X and how it works, the thing is it works so we will use it. Yet go to a forum about mechanics and everybody there will be analysing it as a product, what is the best result per ratio mix, speed driven, weather conditions, etc., etc.. But us domainers we do not care as long as it works! The opposite is true also though, the mechanics don't care about the suffix, as long as it works and they get to the site they wanted they could not care what domainers think about an extension.
By the way Blo.gs has an Alexa 3 month ranking of 71,904, not great by any means, but not bad either, I wonder if that is because the site is 'blo' or 'blogs' according to its users?