I was caught with my pants down by this bug in late September. After deleting both Donkey and Roblog databases I’ve finally found the time over Christmas to rebuild all the templates from scratch. So keep your MT database backed up campers.
On the bright side, I was pretty sure I was a major moron for deleting a blog–not only once, but twice.
I am actually a moron for forgetting that my whole /www directory is backed up daily by my host. By the time I had remembered and requested a restore, the backup had incorporated the delete. Stupid stupid stupid ;-)