It's just a roundabout way to launder (mix) Bitcoin. Chaum's blinded cash can protect your identity from a central bank. In the context of Bitcoin it would help you launder coins without trusting the laundering service, i.e provably secure in a mathematical/cryptographic perspective. In their current incarnation laundry services are opaque: they can do a bad job or keep logs that would effectively make them useless. The secret service could setup it's own laundromat with full loging, and there's no way to find if a laundromat is trustworthy, or if a previously trustworthy one has been compromised.
However the effectives of blinded digital cash relies on you finding partners with which to trade good and services. I can't imagine how that would go. "Have 2Kg of pure Colombian, accepting payment in blinded bitcoins" on craigslist ?
Wouldn't people then just spend them back to themselves on another address with a clean install wallet. No need to trust the integrity of the service beyond, "they took off with the loot" ...
"... put your left foot in shake it all about, put your right foot in, shake it all about, that's what its all about ..."
It seems mathematically complicated but to a user it should be straightforward once the machinery and interface is in place.