The President of the European Council is not subject to any control by any other body. As such, he is more analogous to the President of the Parliament and should be a mostly ceremonial and procedural position.

This is the reason why Blair is "playing hard to get"-- he knows that the position is hugely ceremonial and is saying that he wants the European Council president to have more powers.

In my view, the job description of the E Council president as is or as you describe it should hold -- the position is an appointment, not elected, as you rightly pointed out, the 'appointed' person thus should stick to ceremonial and procedural duties.

Blair would be the wrong man for the job; he is the quintessential underground lobbyist, a steamy wheeler dealer par excellence and if appointed, would be bound to do the EU great harm by causing division from within. The E Council president must be a consesus builder and not a divider.