Sean,
I agree on losing the ball, and as Patrick opined, the fw should be wider and with no penalty causing hazards you can't see. I disagree on the total blindness, having seen golfers tee off 180 degrees from the actual line of play. and most players would disagree with the mirage.
My "perfect" blind shot would be 4 at Royal St Georges, and Pete Dye has one at Stonebridge Ranch here in DFW. The tee shot is blind, but there are some deep bunkers on the right. You can play over the dip for fw centerlline, or shorten the par 5 a bit by going over the deep bunkers. While you can't see a thing, somehow, standing on the tee (and maybe looking at the little scorecard map or knowing Pete) I instinctively knew that the first time I played and enjoyed it, then, and every subsequent playing.
In truth, blind shots are inferior conceptually to visible ones, at least if you believe in strategic design. We accept them when they have to be built because of rock, or whatever, or occaisionally as different types of shotmaking tests. But, I feel there is very little room in golf for a purposeful shot that would confuse a golfer trying for score, and hence the need for some kind of definition to make it palatable.