My ideas to fix blink are very similar to Black Mage's, but I still think there are fatal flaws with those ideas.
The main factor, which I think should be most important when relating to blink, is the one involving invisibility. The fade has become as stealthy as a flying dumpster, and the suspense of an ambush is evaporated by midgame when skulk ambushes simply do not carry enough power. Even the flawed 1.04 blink, which was still a formidable weapon even in the hands of amateurs, was effective at bringing caution to even lategame marines.
However, the invisibility poses to become a great unbalancing effect if you simply throw it onto the existing blink. Although that's how I feel the blink should be, with the supreme mobility and instant blink/attack combo, it would be simply too powerful. Imagine if a civilian or Holy were invisible while doing their thing o_O . Blink would need some fundamental reworking, keeping both its horizontal and vertical mobility.
The other main issue would be immunity to damage. Blink, as it is now, is usually enough to save a fade from death if even a minor attempt to flee is made in reasonable circumstances. The ability to gain great speed or maneuverability would likely be enough to save any fade’s tail, especially if he were invisible. Giving added invulnerability may be going a bit overboard.
Now, with all that said, I need to say I am an avid alien player, Fade being my favorite class just ahead of skulk. I would love to see the fade returned to the glory of 1.04 claw fade, a hit and run master of great power when mastered, and would practically give my right arm to let that happen.