Dragons' Blindsense?

[Ogrork the Mighty]

From the SRD...

Blindsense (Ex): Dragons can pinpoint creatures within a distance of 60 feet. Opponents the dragon can’t actually see still have total concealment against the dragon.

What does this mean exactly? A dragon can pinpoint the space a creature is in within 60 feet but still suffers a 50% miss chance?

 

[Maleketh]

That's precisely what it means. The dragon knows where you are, but it can't sense you clearly enough to launch a precise attack.

 

[Kat']

Yes, exactly. Maybe he can't see you, but has good enough an idea to torch you with his breath weapon. Oh, and you can't sneak upon him either.