Q:

Who gets blinded when the Daylight spell is cast on a Robe of Eyes?

In the 3.5 robe of eyes it says that you can cast certain spells on the robe to cause blindness. The specific wording is

A light or continual flame spell cast directly on a robe of eyes
  causes it to be blinded for 1d3 minutes. A daylight spell blinds it
  for 2d4 minutes.

A player is arguing that since it says "it" in the description then it's the robe that gets blinded and rendered useless, while I think it doesn't make sense since the robe is not a intelligent item and can't suffer such effects, so it's the character wearing it that gets blinded. While D&D 3.5 is not known for having the best worded rules, it seems weird to me that they would chose to write that the robe is blinded rather than write "the robe is rendered non functional for x minutes when you cast blah blah blah" if they meant that.
What's the correct interpretation?

A:

The robe is blinded, the wearer is not.
You're right that the robe isn't an intelligent creature, but it does have vision according to the SRD.

The robe of eyes sees all forms of invisible or ethereal things within 120 feet.

If the robe can see things, it stands to reason that it can be blinded, as indeed it can by its stated effect:

A light or continual flame spell cast directly on a robe of eyes causes it to be blinded for 1d3 minutes. A daylight spell blinds it for 2d4 minutes.

It's clear that "it" in this case refers to the robe; if it meant the wearer, it would say "the wearer" or "the creature wearing it". It does not, so interpret it literally: the spell cast directly on the robe causes it to be blinded, meaning it can no longer "see all forms of invisible or ethereal things". Therefore, until 1d3 minutes or 2d4 minutes have passed, the wearer reverts to having their normal vision.
In addition, although RAW wouldn't mandate this, I would rule that the robe being blinded would remove these effects too:

The wearer of a robe of eyes gains a +10 competence bonus on Search checks and Spot checks. She retains her Dexterity bonus to AC even when flat-footed, and she can’t be flanked. However, she is not able to avert her eyes or close her eyes when confronted by a creature with a gaze attack.

