I never heard of this rule in Ultimate Texas Hold 'Em either. According to SkyCity's rule book for Ultimate Texas Hold 'Em, " Both the Dealer and all players must use both their Hole Cards together
with three Community Cards to make the best five-cards Poker hand that they can." So, you would seem to be right. Very un-poker like.
I'll have to make some modifications to my program to see how that effects things. It will definitely be bad for the player. More Antes pushing and it will much harder to win anything on the blind.
Can you confirm if the Blind pay table is the same? The rule booklet doesn't say.
Dealing Procedures and lists various trips pay tables, but the Blind looks the same.
Quote: rule 9.7
For all remaining players, the Dealer will turn over his / her two cards. Each player and the Dealerís two cards will be combined with three of the Community Cards to make the best five-card poker hand.