HDMI with Cyclone 5 + Embedded USB Blaster

The simple answer is, yes. You can interface HDMI directly to transceivers in Cyclone V parts. However, if you're concerned about doing so, unless this is a high volume product you're involved with, then the relatively low cost of using an off the shelf solution (such as the Analogue Devices part you suggested) shouldn't be dismissed.

There is a long discussion of interfacing HDMI to Cyclone III. Have a read of the following thread:

http://www.alteraforum.com/forum/showthread.php?t=36928 (http://www.alteraforum.com/forum/showthread.php?t=36928)

You may also consider the Stratix IV GX development board as a reference design. This uses an AD9889B Analogue Devices part (very similar to the part you suggested) to implement the HDMI physical layer. I'd suggest it's worth paying attention to the way Altera chose to implement such an interface on their reference boards.

http://www.altera.co.uk/literature/manual/rm_sivgx_fpga_dev_board.pdf (http://www.altera.co.uk/literature/manual/rm_sivgx_fpga_dev_board.pdf)

As for the on board USB Blaster solution, unless you're an close ally of Altera (such as Terasic) you'll not get the code required for the CPLD in their USB Blasters.