The term 'bloom out' around here means that during the spring bloom season every fan has a bloom stalk including the new baby rhizomes. This means that every little rhizome in the whole clump is a now mother rhizome and unless the clump grows some new rhizomes, which is not likely as it has spent all energy making many blooms, you will not get any blooms the next year. It does not mean that the iris dies.
I think several of us have been talking about different conditions. Perhaps the definition I refer to is just a local one.