Sorry, but I think use the block list to remove certain players from your life is just fine. If you find that you're blocking hundreds then yes, a different play mode is probably best.
FWIW I think a good RP'ing pirate is a boon to the game. I've been pirated twice and loved it each time.
Here's where I'm coming from so you understand my position and concerns:
I play an RP pirate, with a key principle that I find the most profitable of avoiding trader destruction in nearly all circumstances. I pull a trade ship and make my demand, which is an amount based on the potential cargo space and rank of the player in question, low ranks pay less. If they comply all is good, if they have no cargo I check and either let them go or repeat the demand at a slightly higher amount for lying.
Runners get disabled, I have the weaponry and tools on my pirate Asp, which as you can see makes things interesting and not overpowered, to disable drives and internal modules quite reliably. I then repeat my demand at a higher amount, with special mention that I have hatchbreakers and will force more cargo out than I demanded if noncompliance is met. Almost every noncheater complies at this point, in a few rare cases I had to use a hatchbreaker to show I could take the cargo before I got an acceptance. Sometimes the ship activates self destruct, I hatchbreak twice before they blow up so I get something out of it. Notably if a runner has no cargo and hasn't been rude I tell them that they should comply to a scan next time, but otherwise leave.
Obviously I get quite a lot of loggers, and have been blocked for pulling players (I have only their word that is the case of course, but notably my instancing gets poorer after such comments). But in terms of danger only the exceptionally rude empty cargo runners, empty cargo fighters, or bounty hunters end up dying, barring an unintended accident of course such as the trader ship ramming.
The point I'm making is that nothing I do here would be considered harassment by the FDEV TOS, I'm after cargo RPing the role of space pirate, and if someone doesn't want to meet me they should use solo or private to avoid that. But the block list means that it's unsustainable for me to really keep at this, especially when the bounty hunters I kill block me and stay in Supercruise, which really hurts instancing. If instancing was a comm block only and reporting actual harassment was used this wouldn't be an issue. At most I probably wouldn't mind the block list isolating the player using it into a private instance if a blocked player shows up, since then it doesn't affect everyone else, but that's not how it works.