Yes, the block mechanism reliably prevents a blocked CMDR from re-instancing with yours. It also does not require that you have instanced with them before; it's possible to search for someone on the social menu and block them directly, or import names from the CMDR history file and then block them from there.
I don't like the mechanism because it gives individual players unilateral control over the instancing of all others they encounter, including those they have not blocked, by imposing their instancing filter on any instance they are part of. I also find the ability to arbitrary block others against the spirit of Open; I firmly believe it should be on Frontier to enforce their rules regarding player behavior, and not allow those who are not violating said rules, to be excluded on the arbitrary whims of others.
I think ED's blocking mechanism is genius. I've played a lot of games, and I'm amazed nobody else has thought of it. It solves every problem with games like this where unsolcited PVP is forced on people. It gives the community a tool to deal with the gankers and bad apples, instead of wasting endless years of attempting to balance the problem out with coding.
You keep saying this is a "persistent" world, but it's anything but. If you take away blocking, people will just switch to Solo. Blocking allows people who don't want to be farm content for some jerk in a murderboat to still engage with others in the open world.
The only ones who seem to complain about the blocking feature, are those who engage in PVP. So that's proof positive the feature is good for the game and working exactly as intended.
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