Generally I agree. It feels kind of shoehorned in when desktop is your goal, like more of an afterthought or side effect of the overall focus.
The main thing I hang on to is the code-specified configuration. I never got into managing dotfiles with arch, but that could be a better solution for many people. Especially along with btrfs, numerous containerization options, and whatnot.
I don’t know if blocking all interaction is possible or not. It can be confusing with federation. As far as I understand, instance blocking pertains to posts and not users. You won’t see posts from the instance, but other mutually federated posts can still have comments from the instance’s users.
I’m less clear on how user blocking works, but I imagine you wouldn’t see comments the comments at all in that case. They can still see and interact with your comments/posts (I think), you just won’t see it yourself. You’d probably have to block each user individually since I don’t think Lemmy has that functionality.