We're getting somewhere. I agree that people use the word "ganker" way too often. That's why I prefer the term "griefer", because griefer to me is someone that trolls and harasses rather than just destroys other ships for the sake of it.
For example - pad blocking. Station entrance blocking. Low-hull ramming to get the wanted status on an innocent ship. Someone that has no actual interest or any role-play or in-game reason to destroy my ship, but keeps doing it repeatedly. You know, playing the game in an intentionally malicious way, kind of bending the rules or working around the rules to cause harm and disrupt other players' game, for the sake of trolling. Basically breaking the 4th wall, to make me - the player, not the in-game character (extremely important distinction) - react in a certain way, usually what is referred to as "salty tears".
I tolerate gankers. I have zero tolerance to griefers. I honestly don't see many other options to get rid of the griefers in the game apart from providing me with an option that allows me to filter them out of the game, while still allowing me to play with other randomly met players.
I've used the phrase 'context defying' to describe such things. I'm sympathetic to those who use block to counter actual harassment or unambiguous context defiance (though this itself is highly subjective, as the AX arguments show...some people cannot accept how anyone could oppose attempts to defeat the Thargoids; I find it difficult to accept the idea that so few would want humanity lose). The problem is that block itself is fundamentally a context defying feature; there is no in-character or in-lore explanation for the player's ability to push someone into a parallel universe. I also strongly feel that policing harassment is something that is the purview of the game and it's moderators, not something that should be outsourced to individual players--a significant portion of whom will use block either as an ad-hoc difficulty setting, irrespective of the validity of the interactions they are blocking, or leverage it as a tool of covert harassment themselves.
Games work best, in my experience, when all players are following the same overarching and coherent set of rules. Blocking is essentially an addendum that allows everyone to write their own rules and push them on everyone else in Open, even if they are completely contradictory.
People want the block removed, but nobody so far offers any alternative to prevent griefers and trolls to ruin other people's game. PEOPLE'S, not in-game characters. I only emphasise that as you yourself have mentioned breaking the 4th wall and the block functionality being, let's call it - out-of-lore.
The alternative that
currently exists is the use of modes. This is far from ideal, but it
is an option, and I know if the choice I was presented with was tolerating harassment, bowing out of the mode I was in, taking a break from the game, or doing something I knew would, perforce, impose my rules upon each and every other player network peer, I would (and do) have serious ethical problems with the latter. It's a clear violation of the spirit of the 'equal rights of others' premise.
There have also been other alternatives presented. One example, I recall is the idea that blocking would make the blocker and blockee (only) invisible/intangible to each other (in addition to a chat block), without altering instancing. This would be just as ridiculous from an in-character perspective, and would cause some potentially confusing interactions, but would preserve the legitimate utility of blocking with far less imposition upon bystanders.
The problem with any proposed alternative is that it would have to meet Frontier's ever declining standards and appetite for experimentation when it comes to this game.
Another observation is that instancing is iffy in any case.
It often is. Some people use this as an argument against the harm blocking causes. Personally, I find such logic just as flawed as not caring about heart disease risks because auto accidents and homicide are also a thing, as if the existence of any risk justifies multiplying them.
The game's network model is sketchy enough without letting people add another, often inscrutable, contraindication to successful matchmaking.