Precisely, your idea is only really applicable to all which destroys the point of it.
The real function of the ignore button would be to ignore totally the antisocial idiots who continually ruin an individuals gaming experience.
Understandably the reason the ignore function is so weak is to stop abuse of it by players. Far to easy just to fly around clicking to put all pirates on ignore if ignore actually meant ignore.
For the odd anti-social idiot who slips through the net, who for what ever reason, geography, timings, mutual friends, the function fails to catch, then I can see people using blacklists. I cannot see a practical method of stopping this. Not without undue expense far in excess of what if anything it's saving.
It isn't like people are going to be running around, making time logs of players they see in instances and adding every pirate they encounter to their firewalls. For that kind of player the grouping system exists and is a lot, lot easier to implement use.
Added: There are people from the boards who I would love to encounter in the game. I know I'm never going to do so because the vagaries of the internet will ensure our connections are never good enough to pass a quality check on Handshake, let alone hold a stable instance. Thats life. Even all the guys setting up guilds may well find that, dependant on geography, network infrastructure, hell just the internet itself they may never be able to see each other.