I think you would have a very difficult time creating a level grade. Yes, motor graders use a mid blade, but most importantly, they have an extremely long wheel base. The long wheelbase minimizes the height change of the blade due to bumps in the ground. When you front wheels go over a bump, it lifts the blade, and you drop some material. When the rear wheels go over the material you just dropped, you again raise the blade and drop some more material. In effect, you can create a washboard effect on your ground with a short wheel base. Obviously, this is not what you wanted.
Dave,
When you have a blade sticking out behind the rear wheels the effect you just described is exagerated (sp?) compared to what it would be if the blade is in the center of the wheelbase.
Example
Rear Tire dia.: 24"
Front Tire dia.: 14"
60" wheelbase (front to rear...or rear to front if you prefer)
A. Blade extending out 42" from center of rear tire
B. Blade at centerline of Wheelbase
C. Blade extending out 24" from C/L of front tire
Front tire goes over a 3.15 inch "bump" (3 deg. incline over the length of the wheel base):
Rear blade will go down 2.18".
Blade in the center of the wheelbase, the same bump will produce a movement of 1.59 inches (although the movement will be in the other direction - up instead of down).
This equates to ~37% greater blade movement with a rear blade, as opposed to a center blade.
To make a fair comparison, I also calculated the movement of a front blade that sticks out 24 inches in front of the center of the front tire, and it moves 4.41 inches upward (which would be even harder to control).
Now, if you can make sense of what I wrote (not suggesting you aren't able to...only that sometimes I ramble...) does it make sense that a center mounted blade would leave less material to...?
Ahhhhh. Maybe I see a glimmer of light in my otherwise darkened mind. The rearblade would leave NO gravel for the rear wheels to run over.
Hmm. After all the work I put into this post, no mere facts are going to dissuade me from posting it!
OMG! I sound like some at TBN think

!
Disclaimer: Your inches of movement may vary based on tire size, wheelbase, and distance of backblade to center of rear wheel.