Isn't the purpose of the log to help diagnose problems? I'd hate to do this if eventually I needed a set of log entries.
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yes.
but can you solve an issue based on a warning in the log? or do you just do a hard reset instead, or wipe the OS? or uninstall/reinstall offending apps?
generally, the only people who use the log are developers, BES managers, and beta testers. you wont see your Centennial sales rep or tech using the log for anything... if they even know it exists in the first place.
Out of curiousity is there any way of knowing how much space that log uses and does the OS retain entries forever or does at some point or other clean up that log?
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