Blastoise needs no TMs or HMs. As I outlined a couple pages back, he has sufficiently powerful moves learned by normal levelup. Iron Defense, Hydro Pump, Rain Dance, Skull Bash.
And as for his level, I disagree. I think there is a third option in the average level of the final boss of the elite four. This would normally be the level Blastoise would be when a player first combats the elite four, and is more representative of his scope of power.