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Basic question: why are all these blocks at the DNS level?

If I want to block users of my network from accessing website X, why would I not block it at the IP level (level 3) by blocking all packets to all IP address that other DNS providers associate with website X?

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If you want blocking to be effective you will need China style GFW. DNS block + IP blacklist + deep packet inspection.

Because of CDNs like Cloudflare, that are basically name-based virtual hosting.

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