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It certainly has it's benefit, but not for the price tagged along with it.
I've my own network of blogs specifically for seo, and it works extremely, extremely well. It's expensive, but the results are worth it. By worth it, I mean I can include my brand new site into my network (most of which are sites PR4-PR6) and can dominate difficult niches within a month or two.
edit: Just read my reply and it seemed a bit contradictory. For my network, I use different hosts, not the same host with different nameservers and c blocks.
However, going with someone like HG and having a different c block for each website, along with geo may work. I haven't tested it.
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