I don’t think that’s the case. The v0.19.0 release notes say:
Instance Blocks for Users
Users can now block instances. Similar to community blocks, it means that any posts from communities which are hosted on that instance are hidden. However the block doesn’t affect users from the blocked instance, their posts and comments can still be seen normally in other communities.
So blatantly anticompetitive. Waiting for the rest of the world to catch up with the EU’s consumer protections.
Most types of ads can be blocked with uBlock Origin, while only some kinds of paywalls can be skipped with Bypass Paywalls Clean. Ads are the most privacy invasive monetization solution and with ad blocking becoming more common, I don’t think ads are a sustainable way to fund content in the future. Still, I would prefer to see voluntary subscription and donation options rather than hard paywalls.