I know that nobody can seem to agree on how this should work, and @Baron of course has his own views that he implements, but I do think it can be approved upon.
Two things that come up for me are this.
When reading a thread, if you someone replies to a person you block, you don't see what that blocked person said, so when you're reading the reply that is referencing a blocked user, you have no idea that its a reply to them, so its difficult to follow along. Now granted, since you blocked the person in question, you don't want to read what they wrote, but at least if the reply post had a quote that mentions the name of the poster that is blocked, even without the actual post, you can at least get a sense of what is happening. Sometimes people post a reply without quoting anyone, and this is exactly how it looks when the reply is meant to be a reply to a blocked user. If the reply could at least include the name of the poster that is blocked, you have some context and able to differentiate between these two types of a posts.
When you click on the "followed threads" page, you see a list off all the threads that you follow, and there is often a reply from a blocked user. So it shows up here, but if you visit the thread at a later date once other posts are made, this information is hidden since there is no mention of replies from blocked users in the actual thread. So in some cases, you get a sense that a blocked user is replying (like from the "followed threads" page), but this isn't consistent across this site. Therefore, a blocked user should either not show up at all in any capacity (you can even see the posts that blocked users like for example), or they should show everyone as having replied, but their content not visible.
The second point is that I notice some blocked users are replying to my messages, which is fine since I have them blocked but they don't have me blocked, but I almost feel bad that they are wasting their time replying to me when I won't be reading their posts. Would it therefore not make sense to highlight who has you blocked on the right side of their posts where it lists the person's post count and likes? Below is an example. This might therefore prevent them from wasting their time in replying to you. Overall, I think more transparency about blocking status might be a benefit.
Two things that come up for me are this.
When reading a thread, if you someone replies to a person you block, you don't see what that blocked person said, so when you're reading the reply that is referencing a blocked user, you have no idea that its a reply to them, so its difficult to follow along. Now granted, since you blocked the person in question, you don't want to read what they wrote, but at least if the reply post had a quote that mentions the name of the poster that is blocked, even without the actual post, you can at least get a sense of what is happening. Sometimes people post a reply without quoting anyone, and this is exactly how it looks when the reply is meant to be a reply to a blocked user. If the reply could at least include the name of the poster that is blocked, you have some context and able to differentiate between these two types of a posts.
When you click on the "followed threads" page, you see a list off all the threads that you follow, and there is often a reply from a blocked user. So it shows up here, but if you visit the thread at a later date once other posts are made, this information is hidden since there is no mention of replies from blocked users in the actual thread. So in some cases, you get a sense that a blocked user is replying (like from the "followed threads" page), but this isn't consistent across this site. Therefore, a blocked user should either not show up at all in any capacity (you can even see the posts that blocked users like for example), or they should show everyone as having replied, but their content not visible.
The second point is that I notice some blocked users are replying to my messages, which is fine since I have them blocked but they don't have me blocked, but I almost feel bad that they are wasting their time replying to me when I won't be reading their posts. Would it therefore not make sense to highlight who has you blocked on the right side of their posts where it lists the person's post count and likes? Below is an example. This might therefore prevent them from wasting their time in replying to you. Overall, I think more transparency about blocking status might be a benefit.

