well just an update I removed the same blenny you have from my aquarium early yesterday afternoon, and already the polyp extension on my green digita has returned to nearly 100% of what it was prior to the blenny introduction.
Maybe the blenny you have came from the same batch my LFS got, because they all seem to be SPS nippers. To think that I bought this fish to help me with a little bit of algae control, and instead he starts chomping down on SPS corals worth 10 times as much as he cost!
As an aside, I had a small two spot blenny last year that never nipped at SPS corals, but then again, he was only about 1" long compared to the 2.5" long Linear blenny