To answer Mew Mew/Sum up the thread,
In the rules being blind has a penalty. Whoever is blind gets that penalty period. Now if a character is built properly they can ignore those penalties. The Sense Surroundings application of the skill Use the Force allows you to ignore the effects of cover/concealment at a DC 15 check and total cover at a DC 20 check. Now to do that takes a swift action, while Improved Sense Surroundings removes the need for said action.
So what the question basically boils down to is this, "Does SS/ISS effectively remove blindness from a Jedi and allow them to act normally." I just looked over the rules and it seems to me the answer is partly.
To me the chain of events is:
1. Jedi is blinded by some effect.
2. Jedi immediately gets penalty for being blind, including giving everything total concealment form him. Total concealment effectively removes the targets form the Jedi's line of sight.
3. If Jedi has ISS he can do this as a free action if he doesn't he needs to wait till his turn.
3a. assuming ISS, Jedi makes a UtF check to sense surroundings as a free action (so it can be done at anytime) to ignore the effects of concealment.
3b. if no ISS, then uses a swift action to do this on his turn.
4. If the check is successful the Jedi ignores the total concealment caused by being blind. Targets lose concealment and re-enter the Jedi's line of sight.
5. The Notice Targets use of the perception skills allows you to make a perception check to notice targets the just entered your line of sight as a free action. So the Jedi gets to make a perception check against each target revealed by ignoring concealment. Since this is a free action it happens the moment concealment is lost. (at least there is no good reason for the character to wait to do this).
This could allow the Jedi to be aware of the targets and thus fight/defend against them normally. But this is also where things get a bit rule lawyery. Technically this only deals with the concealment aspect of the blindness penalty, leaving things such as the movement and defense penalties. However, i would say that the reason the you lose Dex to Ref is because you are effectively flat-footed while blind because you are unaware of targets, but SS allows you to become aware of those targets thus removing the flat-footed-ness and giving you back your Dex to Ref. Why would you move slower except that you are unsure of your footing/surroundings, well if you have "sensed your surroundings" should your movement be impaired? Its not like your legs where blinded after all.
TL:DR. Because the way the rules work Jedi will be effected by blindness but have a realitivly easy way to deal with most of its effects. Most people think that Jedi should be able to ignore blindness for all the examples mentioned below, and so will allow a Jedi to ignore blindness in it entirety with SS, especially if you invested a Force Technique to get ISS, though is isn't technically allowed by the rules.