"Block" effectively does nothing...what Twitter should've done is label the button something like "Ignore"...which would allow you to never be notified when that user sends a direct reply or mentions you...but would not have the same connotation as actively blocking that person in the way that a restraining order "blocks" someone.
As much as Twitter is seen as a superficial surface, nothing more than a dumbed-down micro version of blogging...the technicalities that underly its open nature is something that is hard to grok until you actively use it. I remember the "aha" moment for me was reading the report of when Demi Moore, an early Twitter celebrity, responded to a random person's suicide threat...just sending someone famous such a message would be impossible on Facebook, and pretty difficult on email (even if you knew the address, people/spam-systems are trained to filter such random messages out)...but in Twitter's early days, you had a decent chance of your crazy message being seen by just about anybody. That's the magic/insanity of Twitter for you.