Correct. And this really puts the loyalty of the Blades into question. The claim to serve you yet they keep trying to boss you around. They claim to have spent centuries looking for you or someone like you yet they basically kick you out of their order unless you do exactly what they say?
Side with the Greybeards. Previous generations of the Blades may have been awesome but the current one is a bunch of idiots.
Agreed. That's probably the easiest choice to make in the whole game; Paarthurnax over the Blades every time.
Delphine: "Oh, well the Blades were originally Dragon Hunters, so we're like all about that now", and "it doesn't matter that he helped humans defeat the dragons millenia ago, he killed one person so he's a monster who must die die die".
Paarthrunax:"I'm tired of watching humans slaughtered needlessly by tyrants. Here, learn our language, and fight for your freedom."