I actually wrote a one of the blame implementations out there (Subversion's current one I believe, unless someone replaced it in the past year or two). I helped with some others as well.
At least most implementations of blame don't do what you describe:
Usually in blame for each line you look at the complete history of where it was added and removed in the history and using three way merge (or, in the case of criss-cross merges, random bullshit) and based on the relationships between those you determine whether the line should have been there based on its history, and if it shouldn't but is then you mark it as new with the current revision. In the case where a line occurs in multiple ancestors with different blames then it picks which one to inherit arbitrarily. Again, I assume that continuing with this completely undocumented but de facto standard practice will be uncontroversial.
Actually, most blames are significantly less complex than this and don't bother trying to use the relationships at all, but they just walk parents in some arbitrary order, using simple delta structures (usually the same internal structure whatever diff algorithm they have uses before it turns it into textual output) to see if the chunk changed, and if so, blame it, and mark that line as done.
For example, Mercurial just does an iterative depth first search until all lines are blamed. It doesn't try to take into account whether the relationships make it unlikely it blamed the right one.
Git does do something a bit more complicated, but still, not quite like you describe.
Subversion does what Mercurial does, but the history graph is very simple, so it's even easier.
In turn, what you are suggesting is, in fact, what all of them really do:
Pick an arbitrary ancestor and follow that path down the rabbit hole until it's done, and if it doesn't cause you to have blamed all the lines, arbitrarily pick the next ancestor, continue until all blame is assigned.
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