Blazon allows "overflow" damage now - where it basically acts like the Greater Sphinx did from what I can tell. Its mechanically different than before although still accurate to card text.

There was no overflow.  The combat was tied, so the defender took damage (his unit, which was then rescued), and then the attacker took damage.  The attacker applied damage to the Fire Goblin Shaman, which died.  The death trigger of FGS dealt two damage to your critter, killing it again.  To keep your unit alive, you should have defended forcing him to either win or lose the combat.  If he won, only your guy would take damage (you save him with Blazon but still have to solve the problem of FGS), or only his guy would take damage (which would then kill yours, but you save him with Blazon).

the only thing i can see here is the order when things happen:

1. atk vs. def and determin the winner
2. deal dmg to the def unit. when it is killed, remove it from combat.
3. use blazon life and replay unit.
4, deal dmg to the atk unit.
5. use game text on the atk unit.
6. deal 2 dmg a unit (don't have to be a combatant) at the same quest

now one could say that 3 should not happen in between because first you should finish the combat and deal its damage to both sides and then use blazon life.

Ok so that brings up the next question...  at what point does combat technically end?  Because the way I'm looking at this is, when my unit is destroyed, thats it, no other damage can be dealt because I have no more units on the board when combat was finished, minus blazon life.

So, if the above is suppose to happen, then why don't units replayed by blazon life are not able to take or deal damage of any other combat, because technically based on the responses above, the replayed unit at that point should still be considered...does this make sense?

No, it doesn't make sense.  Your unit wasn't killed the second time by combat damage.  It was killed by the death trigger of the goblin, which has nothing to do with combat.

This is intended. The order of play goes thus: Your unit took damage first being the defender of the combat, so it died, got resurrected by Blazon Life as a reaction, then your opponent’s FGS died and was able to deal damage.