Well, that's the thing, we don't know the other side. The OP may have misunderstood or misrepresented what the rest of the group was saying. On the single clear point of contention--can the blinded rogue move around the battlefield without penalty?--I'm in agreement with the group: Yes, he can, unless the battlefield changes or he moves into unfamiliar terrain.
I feel this might be one of the "rulings, not rules" situations. You are right that there's nothing in the rules that says otherwise (sneak attack is another matter). However, it does run contrary to some common sense. Sure, a blinded character could maybe navigate an area he's familiar with, but how's he going to know where specific enemies are at any given moment? He might try to deduce their positions using hearing or party members' instructions, but it shouldn't be with automatic GPS-enabled accuracy.
This presents an additional interesting dilemma if a group adopts the Theater of the Mind style. It's easy enough to handwave all of this away when there are miniatures right there on the table and everyone is 100% clear on where everyone and everything is. But if they are not, and the blinded character's player declares that he's going in a certain direction or towards a particular creature... well, how do we determine that? I'd argue some kind of check is appropriate here.
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