Can you point out where it says anywhere that bloodlines are supposed to work with LA? Or are you doing what you just had a go at the rest of the forum for doing, making RAI assumptions?
For a system that increases certain things as if you had a higher HD, like skill cap, caster level, and other class related abilities, like advancing initiator level by 1/2, I wouldn't allow bloodline "LA" buyoff any more than I'd allow RHD buyoff. But at the same time, I don't use bloodlines because they're poorly conceived and even more poorly written.