It would work to an extent, any time you see a pirate put them on ignore, you are only then grouped with them if others (not ignoring them) are in your instance. As certainly now most players fly alone this would stop you meeting that player again. Also lists of known pirates will be published that could be pre-emptively added, but that is not my major concern.
I think the "hell ban" instance mechanic is going to lead to many innocent players being put in there. Any system like that where players decide when they have been wronged is going to lead to a huge amount of problems.
That is incorrect. If there are no other options the person on your ignore list is still matched with you.
A player also has the option to add players to an Ignore List which does the following:
Removes any friendship between the players automatically (players can’t be friends with players they ignore)
Ignores all communication from them in game
Ignores any friend requests from them
Is active across multiple gaming session until changed by the player (this is different from the options presented in the above sections as they only last as long as the current gaming session)
People on others ignore lists will not be favoured if a choice exists when match making players together
If all players in a session have the same player ignored then that player will never be able to join that session
If at least one player is neutral or friends with the ignored player above then they will be able to join that session providing there is no better suited players trying to get in at the same time when only one slot is available
If a person earns a bounty their ignore list and friend preferences won’t affect matchmaking, and bounty hunters will still be able to encounter the player, even if the bounty hunter is on the player’s ignore list
If a player is in a session with another player on their ignore list they will still receive messages relating to that players in game actions and pre-canned dialogue, such as declarations of piracy
If a player follows another player’s hyperspace trail, the ignore rules cannot be applied to them. The players will join their next session as a group
Players Ignore lists are based on player accounts, not player characters