1. Your account isn't banned but disapproved. You can ignore the message in blogger because it gives the wrong information and has done for years. If you want to know the true status of your account you should try logging in at www.google.com/adsense .
2. You should have been sent an email saying why the blog was rejected. Blogs (and sites) wishing to use Adsense require "substantial unique text content". In some countries (India, China, Pakistan etc) it needs to be active for over 6 months. There is no traffic requirement.
3. If you no longer want to continue with this application and wish to start a new one with YouTube you will need to do this with a completely different Gmail/Google account. There is no issue with this as, as things stand, you do not currently have an Adsense account.
4. You can't close you current application because it hasn't been accepted therefore you don't actually have an account to close.
The wording you used " AdSense account disabled for invalid activity" indicates there was an existing Adsense account, did someone have the blog before you? Generally if it were declined for some quality issue one would have 2 more chances to apply with an improved blog. IF your sure you never had an account I would think you could do youtube.
They will usually have other identification like a mailing address for an Adsense account, or banking information, making if difficult to getting a different account by just changing email.
Thanks for sharing, your tips will surely help in getting approve adsense account.
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