It looks like there are now three parts of the fediverse: the Mastodon side, the "free-speech side", and the instances that are allowed to federate with threads.
Honestly, I think the whole blocking feature is the Fediverse's greatest weakness. Don't get me wrong, I'm all for freedom of association, but given that at least one of the major ActivityPub implementations built it's entire existence around it means that we pretty much have a broken network and it locks people into echo-chambers. At least Nostr, despite it's flaws makes you judge everyone on an individual basis and not be at the whim of what your server admin wants you to see.