The people who didn't know about these site before probably didn't practice piracy at all anyway, so having this list of blocked websites won't help them now anyway as they can't access them easily now anyway.
So IMHO these blocks mainly work at stopping Average Joes from accessing low-friction, low hanging fruit piracy and annoying them enough that they'd rather give Netflix 12 Euros than learn how to bypass these annoying restrictions.
So blocks like these will definitely discourage more Average Joes from low hanging fruit piracy and keep them as law-abiding paying customers rather than turning them into "hackers".
But as an Austrian myself, piracy was alive and well when I was in the age group where that usually happens and many "regular" people used free streaming sites when kino.to and others were still popular.
The libraries of streaming services are tiny compared to international offerings and some don't even offer anything in Austria at all because it's a small market.
Pirating is still alive and well, not necessarily because people can't/don't want to afford the alternatives, but because they just aren't as convenient.