I'm a blogger and have thought hard about this, as there are no clear cut right or wrong answers. In these circumstances, I would send an email round to family and friends, telling them you've started writing a blog, dealing with your bereavement, the issues it's thrown up, and your hope that it will be helpful to to other grieving parents, at whom it is primarily targeted. For a blog of this nature it does help to be clear about the audience you are aiming for.
In telling family and friends, you have been responsible and honest - it is then up to them if they want to surf by and take a look, but you should not be surprised or offended if they do not. For many family members, especially older ones, the whole concept of blogging, especially about something as intensely personal as this, may not be an idea they are comfortable with.
In my own blog, my own rule of thumb is that if I write about family and friends (e.g. when they visit, including pics) I say nothing that I would not say to their face, and very often the blog will paraphrase a conversation/event. Very occasionally, I will be critical of say, a political issue, or something like an etiquette bugbear such as not writing thank you letters (!!) - in that case, if someone reads it and is given a nudge, then good, but I don't generally do veiled personal criticism. I wouldn't like it if I had a friend who did this.
If your family or friends do take a look it may be that it could be a valuable jumping off point for a conversation, or they may be able to read it quietly and absorb a better picture of how you are feeling. If they are critical, then I would try and work out in advance how you will deal with it - and whether you would be happy to retract/amend or effectively publish and be damned.
The problem I can see immediately is that for instance you might blog about people not coming to your daughter's funeral and one of the readers may think "Well, thea't not fair, I tried to get time off work, but I had to cover" - this happened recently to a friend of mine when she was invited to the snap wedding of one of her oldest scholfriends. There may be other reasons for people doing/not doing things.
To summarise, I think it is helpful to have a hard think about exactly who your blog is being written for and to be up front about it (without turning into a blogging bore).
Just to add, I am very sorry that you lost your daughter, but have focused my post on the blog issues, rather than the bereavement.