Rand Fishkin, in a quite thorough video, explains that natural pagination (aside from duplicate content issues) reduces link juice as pages move from ‘readily prominent’ to ‘archived.’
In order to maintain effective link juice, he recommends implementing sub categories; which also addresses dup content issues to an extent. The idea here is that individual articles/posts can be aggregated to one relevant, topical page based on a specific sub-category. (Prior to seeing this video, I’d attempted a similar technique by using tags, as you can see on the right side-bar.) Not only does this present a natural hierarchy to spiders, navigation by human users becomes much more streamlined as users will be able to link or bookmark the specific sub-category that interests them most!
Check out Rand’s video: SEOmoz Whiteboard Friday – Solving Pagination Problems