"We Blew It"
In saying "we blew it," I believe that Wyatt was expressing his disappointment in the results of their travels. Their good friend George was dead and instead of spending money on useful, practical things, they "blew it" on prostitutes and gas to go places that they didn't belong. I think that the phrase "we blew it" was an expression of Wyatt's regret as well, for using the hippie culture for it's access to drugs and sex instead of the revolutionary changes that the movement could make possible.