My sidebar is so Web 2.0 now. You may have noted the change from a list of links to a dynamically updated list of recent posts from the other blogs I read; this is a fairly recent addition to Blogger's functionality. You'll also see that it works with anything that has an RSS feed; Twenty Sided Tale has nothing to do with Blogger, but it works.
The "Follow this blog" only works for Blogger people. It puts a feed of this blog into your dashboard when you sign in; it also makes adding this blog to a list of recent posts like the one over there a little easier. There are also the non-Blogger subscription links, just because.