gecko, we've had similar users, and we've taken a similar tactic. Ban as appears (and he's so annoying that our users sometimes recognize him before we do) and IP ban if that ban isn't going to interfere with other users. As for the blog, we had a whole new forum of "disgruntled" users created, and for three years now, we've just ignored it. The angry ex-users happily sit there badmouthing us (mods, admin, users they don't like) but no one sees it because no one reads it.
I wouldn't worry too much about the blog. Anyone who actually sees it, which is probably almost nil, will realize pretty quickly what's going on. Most users who do that make it very clear through their posts that they're just sour grapes, and most people aren't going to give it a second glance.