~
I understand what you are saying. To be honest, I am confused with their answer as well. I have asked them more questions after their initial reply. I will share here what they say if it's something worth adding. They seem to have confused using the Blockstream app as a companion app to the Jade with creating a hot wallet on the software. I have asked them how the interaction with the blind oracle will prevent a malicious third party who knows the PIN of the wallet from accessing it and stealing the coins. The software can't differentiate between me and you to know who is the legitimate owner and who is trying to steal from someone else's wallet.
From what you mentioned, it seems to me PIN function is tightly tied to Jade wallet, maybe that is the reason why Blockstream Green can't generate seed offline. Maybe it would interfere with Jade wallet functionality.
This is only my wild guess, lets wait to hear from Blockstream...