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This is what getting Dugg looks like. I've seen other graphs-- getting Dugg appears to be more pain than value, unless you are monetized out the wazoo on CPM advertising. You are a a content site, everyone comes to look at that one bit of content, then leaves never to return. Two weeks later, the large scary hosting bill comes.
Meanwhile, you pick up a handful of new readers, but the needle doesn't really move. There have been a number of articles about how StumbleUpon delivers the goods over time far better than Digg, but not often they point out that StumbleUpon, unlike Digg doesn't usually cost you money because the increased traffic is spread out over time, so server boost required. I suppose your could make a viable business out of it if you could get Dugg regualrly, thus the "digg this" widgets. I wonder how often that works for folks who aren't the New York Times.
That said, we've come up with a policy at PublicSquare where we don't charge you for getting Dugg -- a one day spike doesn't change your costs. No one should have to suffer just because they get popular for a day.
I think you hit the nail on the head here. Being Dugg has mostly short term benefits, the only long term benefits is that you often pick up additional links that could help in the search engines long term. However, I have had several clients get Dugg and then wonder was it really worth it. Smart move on not charging for it. I assume the cost is manageable?
Good policy. My web host has had roughly the same policy for many years, and on the one or two occasions when I've been slashdotted, it saved me from big charges. That's one reason I'm still hosting there despite their normal charges being somewhat more than I would pay elsewhere.