Let me start by saying the album version of Blackout is awesome. Sure there are aspects that can be improved but I love the song. I think the chorus is one of the best of their career.
The live version sounds great and is one of the few songs in the SOI/SOE era that has translated very well live. But you are 100% right that something is missing and it's on my list of "post McGuiness" dumb decisions.
U2 excels live, in fact they are at their best in a live environment. U2 tours open on a very exciting note, even when they are songs you might not care for. For me:
Popmart Tour: I don't like Mofo but the entrance of the band on the stage one by one with Bono coming in last was a huge build up all while "Pop Muzak" blasted. Mofo was performed with excitement with Bono jumping all over the place and Edge moving around.
Elevation Tour: the one by one entrance while the remix version of Elevation is playing in the background with Bono jumping in with the songs chorus all with the lights on....this was fucking amazing. I know a lot of hate is in this place for elevation but if that opening didn't get you jumping..you're dead inside
Vertigo Tour: one of the more subdued openings but COBl worked well with the slow burn opening and the lighting
360: Breathe....Larry walks out alone and smashed the drums and then one by one they enter with Bono coming in last. This was an exciting opening to a song that didn't work great live
360: EBTTRT....insanely awesome and sooooooo much energy
iE Tour: The Miracle is an okay song but it worked well live and Bono coming on to the stage to start a sing along, which worked every time, and then right when he hits the main stage Edges guitar kicks in....well done opening.
Now we come to Ei and The Blackout.....and here is where the post-McGuiness dumbfuckery starts:
One of the biggest wow moments at a U2 show is when the band shows up(see above examples) and they fuck it up. Bono and only Bono(see what I did there) comes out to lip sync a very slow/mellow song. The crowds I have seen on YouTube and at my show are very excited for about 30 seconds until they realize it's just Bono and he is miming the album version of LIAWHL. The visuals are very meh at this time and there is nothing to get excited about (no other band members, no sing along chorus, no guitar or drum solo and no amazing vocal moments a la Miss Sarajevo or Sometimes You Can't Make it on Your Own (did I mention he was lip syncing during a live show most people payed hundreds of dollars to show up at).
Then he disappears and the crowd (at least at my show and from most of what I have seen on YouTube) is just kind of confused. Then Blackout starts....sweet, right? But no band. It's only during the chorus that you realize they are in the screen but for 85% of the song you are not able to see the band....you are simply looking at a screen with ore recorded visuals. Then the screen finally rises and...sweet, there they are and the crowd finally gets excited but the band has very limited movement because they are in a ~6 foot wide cat walk. So Edge and Bonos energy is limited to them.....turning around every few seconds.
So, for the first song and a half to open up the show, you not only don't see the band but you are either listening to a lip synced performance of an album cut or watching a screen with pre recorded images. With this opening, they sucked all of the excitement and energy out of the "here's U2" moment. I mean, I LOVE the Blackout but how can I really get into the song when I don't even see any of the band members? I think the screen is an awesome add on to the show but by making it the focal point of the show opening, you take the attention, energy and excitement normally reserved for the band away. They should have just opened with the Blackout and a similar "intro" style as iE/360 and let the song/band be the focal point.