What is value-blindness in the Ethereum white paper?

Can someone explain what Vitalik meant by value-blindness in the white paper? (Edit: I know what UTXO is and how it works. At least the basics.)

1. No way to provide fine-grained control over the amount?
2. What does it mean by all-or-nothing?
3. How does the hack example work?

"Value-blindness - there is no way for a UTXO script to provide fine-grained control over the amount that can be withdrawn. For example, one powerful use case of an oracle contract would be a hedging contract, where A and B put in $1000 worth of BTC and after 30 days the script sends $1000 worth of BTC to A and the rest to B. This would require an oracle to determine the value of 1 BTC in USD, but even then it is a massive improvement in terms of trust and infrastructure requirement over the fully centralized solutions that are available now.

However, because UTXO are all-or-nothing, the only way to achieve this is through the very inefficient hack of having many UTXO of varying denominations (eg. one UTXO of 2k for every k up to 30) and having O pick which UTXO to send to A and which to B."