Ovinomancer
No flips for you!
Quite possibly, yes. This is, fundamentally, a game, not a reality simulator. Think about closing your eyes and everyone around you is doing something noisy -- moving, interacting, fighting, whatever -- and you're going to have a pretty good idea that they are there and even the general location they may be. Remember that "locating" in 5e is to a 5 foot square area. That's not a small area for a person to be in, and they can be anywhere in that volume. The impact of this is that, if you wanted to throw a ball at someone in the room with your eyes closed, you'd probably have a good idea where to throw it in general, but still have a pretty small chance of hitting them -- which is what the automatic disadvantage represents. Now, if the people around you are quiet, or there's some other environmental thing that would make it difficult for you to locate them, that's where the GM ruling comes into place. You might not be able to locate them to even within a 5' square area. You can still throw the ball, but you'd be even less likely to hit as you're now fully guessing.So are blinded creatures aware of the location of everyone who hasn't taken an action to hide?
In both cases, though, you might be aware a person is nearby, but be unable to locate them.