You can customise your widget in all kinds of ways, and then post a little button on your blog. When a visitor clicks on the button, they can customise your widget too, and put it on their own blog or site.
(Note: I’ve removed the button because it was making loading too slow. Instead, see the blidget here.)
I am not too sure why a blidget is intrinsically a better way to link to another blog than using the (presumably now) old-fashioned single-link blogroll, but there you go. The widgetosphere is growing rapidly and the blidgetosphere will soon follow, if you believe what they say about it.
Everything Typepad, the Typepad house blog, has an entry explaining all about blidgets and why you should want one. But you don’t need a Typepad blog to have one, Widgetbox supports most blogging formats.