It's because the Blanking input resets the internal segment multiplex counter. If you toggle it at high speed you'll get an uneven or unreadable display at a guess. It's only intended for blanking or low speed flashing. It's unusual for it to reset the mux counter though, most displays allow dimming this way.
You could always try it. It's unlikely that it will cause damage unless you get one (set of) segment(s) much brighter than the others. They don't seem to specify the internal mux oscillator frequency but you might just find a frequency that is slow enough to work without flicker being too objectionable.