Well, I got it to work. I installed the standalone programmer version 7.2sp3 (vs. just installing the driver set) and it now recognizes the USB-Blaster in the v11.0 programmer. I didn't reinstall / delete drivers or anything. I verified that after firing off the programmer in Quartus v11.0 I really am running the v11.0 programmer -- the Help > About Programmer indicates I'm running version Quartus II v11.0 Build 157 04/27/2011 SJ Web Edition.
I uninstalled the 7.2sp3 version and the USB-Blaster option disappeared. I reinstalled it and it appeared once again.
Strange!!!!!!!!!!!!
Edit: It turns out that the driver *did* get updated to the older version. I don't understand why the standalone drivers posted above didn't work for me but installing the full standalone program did. The driver info for the ones that are working for me are as follows:
Provider: Altera
Date: 5/19/2006
Version: 2.0.0.0
Hopefully, this helps someone else.
--tim