From the article you posted, blocking still stops people from communicating with you.
The only difference with how it is now is they can still view your posts. I don't have a dog in this fight (don't have Twitter) but this seems like a good feature.
On reddit I've been blocked and then called a Nazi/reprehensible person/nonhuman scum. When blocked, you can't see what people say about you. I would like to report the comments for harassment, but I can't.
Blocking should stop someone from being able to communicate with you - but it shouldn't be a shield against reporting harassment.
Back when I still had an account, after never seeing his content in the previous ~15 years I had been using Twitter, he was suddenly all over my feed. I had to mute him, and then, when that didn't work, block him, within months of his takeover.
I made and follow my own "lists" and that blocks just about anything (including most ads). Also, having just under 10,000 block and mute words helps a bit.