Yes. I use it every day. In essence, using the blog surfer simply amounts to subscribing to the rss feed of another wordpress.com blogger's blog. And as it's on the dashboard it's more convenient to use than my feed readers.
Also as far as clicking through to the blog goes, it's the same difference whether or not people use feed readers to read whole posts or, to actually click through to the blog or, if they do the same thing using the blog surfer.
Here's a word to the wise about truncating every post by using a <!--more--> tag. It's used as a prevention tactic when it comes to blog scrapers. It's also used by the obsessive bloggers who do all kinds of gray area dubious things to inflate their stats. I've experimented with this and what it does is drive readers away. They get peeved about having to click through every time to read the whole post and they desert your blog.
Also if you are using rss feeds to backup your blog, then note that the wherever <!--more--> tag is inserted and/or when "summary feeds" are selected rather than "full" feeds you are not going to get whole posts.