That was my general concern. The race almost requires their paragon to not be terrible, but then if they take it, in 3 levels they practically get another class that they progress while taking levels in anything else. One thought I had was possibly giving them a 'free' bloodline level (thus allowing them to take an intermediate without needing to give anything up), then removing one of the latent bloodlines from the paragon (likely the level 2 one, and moving the bloodline level down to it's place from level 3). They would still be potentially powerful, but less so (if only slightly).
Though looking at it, doing so would allow for 2 major bloodlines and 1 minor. providing a total of +7 ability modifiers, as well as a smattering of other abilities, in exchange for -4 to abilities and 4 levels (3 paragon, 1 bloodline), which when compared to some other races with LA/HD doesn't seem that bad. Thoughts?
Well, that would actually be closer to TravelLog's idea. While I think it's a good idea that would be worth making, the idea of the blooded was for a race that would could have more than the normal bloodline strength on its own.
Still in part it can be somewhat difficult to judge bloodlines from a balance perspective at least with races. Namely as their scaling nature can make them overly weak at early levels, or overly strong at later ones (depending on what factors you give the race to try balancing it.
Owrtho