Oil blackening has two drawbacks - it is brittle and often chips or peels, and if the part becomes too hot, any heat treatment can be negated.
In the old days, oil blackening was common (U.S. Krag rifle receivers were oil blackened at Springfield Armory) but it was not very durable and any receivers that had to be refinished had to be rust blued, since the oil blackening was done as part of the heat treatment and was a one-time process.
Jim