Digg is ranked 192 on Alexa. Its Google Page Rank is 8. And the name is very popular and it used to have a huge following. Once the media get's a hold of this story (well it already has), tons of people will visit it just to see what they do with it. Plus, they still have a ton of traffic, of course not as much as they used to.

True, I hadn't thought of the domain acquisition, but thats because digg is effectively dead to me.

I can't think of any service that could be built out that will benefit from that domain name though, s even for a four letter domain - I think they threw $500K down the tubes.