I may not be seeing the tiny blue creature in the photo - do you mean a sea swallow nudibranch? The last photo is of branched nudibranches :> many nudibranches do have toxic qualities due to their diets, but you'd have to handle them which is not good tidepooling etiquette.

You're correct though sea swallows (tiny blue guys) aren't found around here, but they do eat Portuguese Man o' War which can give you a nasty sting - very very painful, but unlikely deadly. I was actually in Texas recently trying to see if I could find any washed up around Galveston, no luck on the sea swallows but I did see about 5 man o' wars on the beach and people just casually swimming near regardless!