BackFire
Blood. It's nature's lube
People are taking the word blind by it's default implications, and not by how you actually mean it, I think. Blind, as it is, according to actual and largely accepted definitions, first and foremost implies that you are not seeing something.
When used within the context of faith and religion, the word implies that the person with "blind faith" is so convinced in their beliefs, that should evidence or proof arise that shows them to be wrong, they would disregard it lazily, blindly following their beliefs in the face of a greater truth. This is why a lot of people object to the term 'blind faith' being used to cover all aspects and types of religious followers and believers. Many, many people don't consider themselves that kind of believer, and they probably aren't. Though, your use of the word is different and less insulting than the normal and common use of the word; you simply mean it as faith.
Your use of blind and faith is somewhat redundant in this case, I think, as the word faith alone carries the proper implications and meaning that you are trying to get across. Faith, on its own, means that what you believe in does not carry any substantial evidence, throwing the word "blind" in front of the word changes that meaning for most people, who again, are used to that combination of words meaning something else entirely to most people, and the way you use it is confusing, since faith has the same meaning as 'blind faith' in how you're using it.
Example, you say: "So if a theist says they operate without blind faith, either their justification has logical holes or they don't truly believe." Meaning just 'faith', and not 'blind faith' as it's commonly understood.
So when a theist objects to the idea that they operate under blind faith, they're going by the common usage of the term -- that they're fanatical and that it would be impossible to convince them otherwise should proof arise showing them to be wrong, instead of what you actually mean by it. They don't deny that there is faith, but that it isn't 'blind', meaning they see themselves as reasonable enough to know that it is faith and nothing more.