That is completely contrary to the text of the spell. Dispel Magic states it ends the spell, not the spell's effects on that target. This is one of those cases where you are either playing by 5eSAC edition or 5e. If they want to errata Dispel Magic, then errata it - don't give 'advice' that is completely contrary to what the text says!
Yep, if you follow this 'advice' then all you would do is end the ability to recall the Blade if cast on the caster, since that is the spell effect on the caster. Would affect a lot of other spells, too.