No, that's meaning two:
2. [historical, rare] Sometimes all-capitalized as `BLIT': an early experimental bit-mapped terminal designed by Rob Pike at Bell Labs, later commercialized as the AT&T 5620. (The folk etymology from `Bell Labs Intelligent Terminal' is incorrect. Its creators liked to claim that "Blit" stood for the Bacon, Lettuce, and Interactive Tomato.)
I do like the Jargon File - it's full of fascinating stuff like that. Blit came from BLT, came from BLock Transfer, came from PDP-10 assembly. Marvellous. The most I ever did with a PDP-10 was a bit of BASIC and playing Pac-man, but I still use the vocabulary it spawned today. That's cool!