Is this the correct use of Blockquote, q and cite?
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Using attributes such as the cite attribute of the blockquote or q doesn't make it easily displayable (without JS or tricky CSS) and so does not address the aim of displaying a reference link easily. It is now conforming to include cite (and/or footer) into blockquote to specify the source, either textually of through a URL, of the quote, like below :
Beware of bugs in the above code; I have only proved it correct, not tried it.”
Donald Knuth: Notes on the van Emde Boas construction of priority deques: An instructive use of recursion, March 29th, 1977
Note that :
cases of cite that are part of the quote contents (not the source reference) are also deemed quite rare, and should be handle through a differenciating class on the relevant cite subtag)
Regarding q, it is indeed aimed to quote inline, but it is more likely to be used outside of blockquotes (quotes into quotes are quite rare).