I had them both, And have returned Arlo as a consiquense. The Blue light is a hardwired indicator that recording is active and can’t be overwritten by the firmware as per Blink support.
FYI a lot of motion detector have an Ember light to them when motion is active. So Blink should not be any different.
The Great thing about Blink is that you can set ther recording time to 5 sec and then it can become a motion sensor for when you are home via SmartThings integration by @RBoy. Here!
Yes I used them both. They both record well, but for the ammount of flaxebility Blink gives me and a lot of others on the above thread, Arlo is of no use.
https://community.smartthings.com/t/release-official-blink-camera-device-handler-with-motion-sensor-live-video-streaming-integration-with-smartthings-shm-temperature-signals-and-push-notifications/40535?u=lmosenko