the average blending had the advantage that the orthoimage looked much more plastic... it was always a bit more blury, but as an advntage, you could really see the stiff borders of objects (well, in our cases trees, since we are working in forests).
What I mean can be seen in a webmap we produced some time ago
http://elsilencio.forestvisions.it/I prepared a small video which shows how to use it.
https://youtu.be/V4pADuIL0aoSo, as you can see, through the average process you get border lines on the objects (probably form shadow information, I never really understood how they originate) which are an additional information for the viewer (user) to interpret the maps.
I hope you understand what I mean.
The other advantage we had with averaging was that you got rid of different exposures in the image (shadow areas vs sunny areas, for instance). This made the map more homogeneous. I still did not check how this aspect works with the new version of PS. But at least it was an aspect which was important for us with the averaging of the color values.
Cheers