Proper ingame block system

Iirc, muting hides a user from YOUR chat, however, the user can still see the person who muted them talking. Which often drags out needless arguments which end up flooding everyone's chat in the end.
I believe it would be a lot cleaner and less stressful for users to have a block icon added that mutes them for both users and perhaps even hides them from each other's player lists.
Out of sight, out of mind?