It is not a blind spot. The problem with financial advice is how to tailor it to the receiver. The idea of treating the house as special is good for everyone that otherwise would start to spend on it. For someone who one might call a real rational acting financial sound person it is possible to analyze his situation wholy.

I used to find it weird when people start cutting up their credit cards. It makes sense if you other wise use them, but if you do not, then you can just store them in a nice place and decide to not use them.