I actually like them both ways. The milifleur (sp) appeal of the top picture is awesome and the separated with the blue back ground showcases each design. I bought this fabric to make a OBW also and your work has made me anxious to get it started.
You might want to try getting them all made and get them on a design wall so you can play with them. It would look cool to add individual blocks into a blue border around the blended blocks. Just an idea.
If you don't like the blended way after you play a while then go ahead with the traditional blocks. Keep us posted as you progress 'cause this is really cool!
peace