1. Remember, we are only talking about an undrafted third string RB. Even if he would have been drafted pretty high had the Boise incident not ruined his senior season (which by the way is extremely debatable, a lot of people claimed that he was only a 5th or 6th round prospect based on ability) the fact is that he was given a shot in camp just like everybody else, and didn't come close to threatening Javon Ringer. That shouldn't surprise anyone. Ringer was the entire offense for Michigan State. By contrast, when Oregon suspended Blount they didn't miss a beat because his true freshman backup LaMichael James was a much better player. So all evidence points to Ringer - who dropped in the draft because people felt he took too many hits in college - simply being better than Blount anyway. Plus Ringer spent last year learning pass-protection and receiving skills, which Blount never learned playing in that Oregon offense. Bottom line: Johnson and Ringer are going to play this season. Blount never was.
2. The idea that Blount was going to be this short-yardage/red-zone specialist this season was a delusion existed only in the minds of fans. There is NO WAY the Titans were ever going to put in some undrafted rookie who barely made the team in the game on 3rd and goal. You be the coach who tries something like that, and you be the coach who has to face the fans/the media/the GM/Bud Adams/the other players on the team who wanted the ball in that situation but didn't get it if (or more like when) it doesn't work. If you call a handoff to Chris Johnson or a run/pass option to Vince Young in that situation, no one says anything. But blow a critical short yardage play against Jacksonville because the #53 guy on the roster fumbles or misses the hole ... again you be the head coach or offensive coordinator in that scenario.
3. When McRath comes off his suspension and/or Thornton off PUP, the Titans will dump the "extra" LBs. (That is, unless they are dynamite on special teams, which Blount isn't.) That will allow the Titans to add Blount to the active roster. What if someone else signs Blount? Again, see #1 and #2. This team that signs Blount will be doing so in order for Blount to do what for their team on game day, exactly? But even if they do, or if there is an injury to Johnson or Ringer, big deal. The Titans can just sign an RB off someone else's practice squad. Like who? Maybe Charles Scott from LSU, who is like Blount except more athletic. Or they can bring an out of work veteran like Samkon Gado on. Whoever it is, that guy will still be #3 behind Johnson and Ringer, two guys that the Titans really like and for good reason. So in order to actually get playing time, the guy will have to be better than Ringer. If not, in order to be worth keeping, the guy will need to be able to contribute in the passing game and play special teams. As Blount is neither, the Titans correctly figured that they can live without him this season if need be.
Bottom line: no big deal. Much ado about nothing.