diigo is a bookmarking service. I use it myself, largely to save things I find online for later reading in a cross platform manner: ie I spot something on my phone and diigo it for later reading on my laptop.
diigo has a few features that similar services don't offer, which I why I switched from evernote. Groups sharing is a win for me as are some of the annotation features.
You can make your bookmarks public as well, which is where those backlinks you are seeing probably come from. Are they all from a couple of users or seem to be quite widespread?
Social bookmarking as a link building means is pretty old hat to be honest and generally not too effective. In fact too high a proportion of this could be risky. I think that most people would rather have one nice authority link than a load of diigo links.
Short version then: good service, but not for link building.