Where? If we're going to operate on the assumption that all flesh and blood is intrinsically magical, I would like to see the source.
Even with a source, I am not comfortable with accepting a dwarf's theories on magic, no matter how adorable they may be... people who can actually use magic would have figured this out at some point in the last millennium if it was true.
In any case, I don't have an objection to using the term "blood magic" for both the school and the method used to cast spells because it is appropriate in both instances. I also don't object to the Chantry granting exceptions to the Templars because it suits their needs. Although this clearly illustrates that not all blood magic is sinister by default, it is largely irrelevant given the Chantry's overall mission to spread its influence and preserve the status quo. Either they allow the limited use of blood magic in this specific case, or they lose the ability hunt down apostates... seems obvious that they'd bend the rules here.