How often and where do you still hear or see LiveJournal blogs annnounced or promoted? The main blogs I see being recommended, are built on Wordpress or Blogspot platforms. I can't think of any LiveJournal blog that was widely advertised on sites the last couple of years.
Drupal by the way is not a blogging website, is it? I do remember Xanga, but only when you mentioned it, had forgotten about them entirely
The only blog providers I could think of except for Wordpress, Blogspot and LiveJournal were local initiatives orientated only to people in 1 country (I used bloggen.be as example from my native country but noticed similar initiatives in other countries -- due to the lack of certainty how long the services will survive I see though that many now switch to Wordpress or Blogspot too even when there is a local provider also offering blogs for free)
I must say the two big players offer a great service so maybe that's why I haven't been keeping eyes open well to other blogs. The only reason when I'd maybe consider looking around would be if I'd want to blog about something more sensitive (eg politics) and not wanting to jeopardize my existing blogs and thus keeping that one blog with a different host. But that'd be the only circumstance I could think of ; generally once someone is satisfied with a host/provider he's just staying in the comfort zone without actively trying and comparing other systems.