Naaah - if I understood it, it can't be technical
Just take your time, read - Google is your friend.
See? You got that right already.
It does not matter. As long as you upgrade to a 10.6.1.x version, your bootloader will be compatible with TWRP 2.6.1 or 22.214.171.124 - see below.
sbdags is currently recommending TWRP 2.6.1. That is the version he included in the bootloader/TWRP package he provides in the OP (Original Post) of the CROMi-X thread.
To elaborate: In flashing custom roms the most important aspect is that you always have a compatible bootloader/recovery combination. You use your recovery to flash roms, bootloaders, kernels, wipe all or part of your SD card - the works.
If your recovery gets corrupted but you can still boot into the bootloader, you can install a new recovery using the fastboot protocol (which provides low level access from your computer). If your bootloader gets corrupted (and the most common cause is the wrong recovery) and you cannot boot into recovery, NVflash is your last chance to recover the tablet because: no bootloader = no fastboot access.
The easiest way to get a current bootloader in your situation would be to upgrade your stock firmware. The risk for something to go wrong is close to negative 1
Then you would download TWRP 2.6.1 for the TF700 from the Teamwin website and use the fastboot protocol to install it to it's proper partition.
Risk level is very low if you can follow the instructions in my little tutorial or in the Minimal ADB Fastboot Tool thread.
Once you have TWRP installed (and you tested that it's working) you could - and this is totally optional - flash the bootloader/TWRP package from sbdags OP. Just to make 100% sure you are on the correct combo.....
A blob is a file - better: an image. Binary Large Object is the origin, I believe. For a technical explanation don't ask me! Go here:
If you look into the Asus firmware zip file, inside is a blob and a meta data file (if memory serves me right). The blob is the system image.