So this needs internet connection to Blockstream servers and they need to work. If they go down? What happens? How do you unlock the secret? Passphrase?
Discussion
Correct, in case blockstream stops giving service you would only have to restore the seed in another wallet or operate in the other mode that Jade has which is air-gapped (like seedsigner).
There is no risk of loss of funds.
On the other hand you can set up your own server:
https://help.blockstream.com/hc/en-us/articles/12800132096793-Set-up-a-personal-blind-oracle
You also have it on Umbrel:
Pretty cool system.