http://forum.square-enix.com/ffxiv/t...-BLM-rotations...
I tested a bunch of rotations and found I can get around 250-300 DPS with single rotation. It's mostly the same as yours, though.
My main rotation is just Fire III > Fire I spam > Blizz III > Thunder II > Repeat. The mana ticks aren't that awkward, though. They just take a little getting used to.
It isn't that much of a damage loss, though. I never notice it in single rotations unless I'm parsing. Only time I notice DPS loss is AoE rotations.