Previously, we had proposed the technique of light shift imbalance induced blockade which leads to a condition where a collection of non-interacting atoms under laser excitation remains combined to a superposition of the ground and the fist excited states, thus realizing a collective state quantum bit which in turn can be used to realize a quantum computer. In this paper, we show first that the light shift imbalance by itself is actually not enough to produce such a blockade, and explain the reason by the limitation of our previous analysis had reached this constraint. We then show that by introducing Rydberg interaction, it is possible to achieve such a blockade for a wide range of parameters. Analytic arguments used to establish these results are confirmed by numerical simulations. The fidelity of coupled quantum gates based on such collective state qubits is highly insensitive to the exact number of atoms in the ensemble. As such, this approach may prove be viable for scalable quantum computing based on neutral atoms.