Steven Zahm@ Matt
re: Could we achieve this with your directory?
Sure. I would recommend setting up the blogs as an “Organization” entry type and use the Name field for the blog name. You could then use the Links fieldset to add a website and a blog link. And finally use the bio field for the description.
re: We would like to display the blogs in a nice way, possibly showing the RSS feed underneith.
This is possible but would have to be custom coded as they is nothing that exists “out of box” to enable such a feature.
re: Which addons would you recommend?
This depends… are you managing the directory or expecting your users to? If you are doing the maintaining, then you need nothing. If you users are, then at the very least you will need the Link extension. If you want to enable frontend editing, then you’ll need the Form extension but that is optional.
Since it a a blog directory, the SiteShot extension might be a good addition.
re: Which template would you recommend?
Well, probably the cMap template.
Hope that answers your questions thoroughly!