I could go either way on this issue. However, the few places where it says blog are configured by me before I turn over a site to a client, so its never come up. I know I can make WP do wonderful things that aren't provided for out of the box, and the clients pay for those wonderful things and not for what I call them.

However, If it said 'Site Name' instead of 'Blog Name', that'd be fine to me too.