Many of my sites are using Wordpress as a CMS


After a few years of blogging articles i have several links to each month eg
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
You get the point


So Question: Which of these views of mine are correct?


1.Is this useful in Google SEO terms as it gives the spider access to the site on every page and helps spread link juice?


2. Is it diluting all the onsite SEO and thereby diluting any benefits of keywords etc i would be better off removing the archives on each page - knowing that my xml sitemap submitted to Google webmaster will help deep crawl?


3. Neither - do something different to the above thinking...