There is a misunderstanding about iframes harming SEO. There is NO inherent penalty from using them, because there are several legitimate uses for them and Google realizes this. For example there are iframes in Gmail, and iframes for when we embed our youtube videos, and iframes for our facebook business page, which are ALL indexed on Google without penalty.
The only down side of Iframes is that it is not a part of the parent website, and therefore not indexed as such so it doesn’t help your SEO in that regard, but it doesn’t hurt it.
Besides that there are many factors that effect SEO, and getting someone to click on your blog from your iframed webpage will help and can help your Blogs SEO which in turn can help your website’s SEO. So there is still plenty of benefit.
That is why I am Iframing it, until I figure out what I want to do (either buy into a wordpress premium website, or something else). For now my blog is on my website and it works, and it is beneficial.