It doesn't matter whether or not it effects the non-magical citizenry though, not to the people making or enforcing the laws. The rulers have made a law regarding blood magic in their lands, they are well within their rights to do so, and they will enforce it, unless the mages are willing to violently carve out and maintain a territory, they are going to have to work within the confines of the law of the lands they inhabit, they can't just decide which rules they feel like following.
If the Circles became autonomous sections in their own right, this wouldn't be an issue. It would be a little dot of land in the countries that would be bound under its own laws. A state within a state, if you will.
So were a
Mage to practice blood magic inside the Circle, he'd be legally allowed to do so. If he stepped foot onto the borders of Fereldan soil and slit his wrists while dancing naked under the moonlight, then he'd be subject to Ferelden's laws about the illegality of it all.
That's primarily what the fight for the
Mages entails, I feel. The fight for the Circles to be considered autonomous areas (but with regulations, of course, like the Templars and Chantry. They wouldn't be in control, but they'd help
keep control).
We've no indication that the First Enchanter, Senior Enchanters, or Fraternity Heads are elected to their positions.
Actually, the First Enchanter is always picked from among the ranks of the Senior Enchanters. The SEs decide who will succeed a FE.
Democracy, at least a little bit.