No, that’s a half-measure at best… It only blocks Threads posts from showing up in your feed. It does not block Threads users comments from showing up on federated instances, even if the individual user personally blocks them.
I am legitimately fearful for LGBTQ+ users, as their community members have already been harrased on Threads by the far-right.
I disagree that they aren’t selling out.
I consider it to be as such when this move isn’t supported by most of their userbase, they misframe that blocking Threads is a viable solution for the rampant issues with hate/extremism, and the decision puts their users at risk (both in the form of extremism/harassment and exploitation by Meta).
It’s an inch towards becoming mainstream, but the costs outweigh the benefits IMO. I believe it’s hypocritical to defederate from exploding heads and then turn around and federate with Threads.
I think misleading users into believing they can block Threads (only the posts), making a decision against the majority of their community’s wishes, and instead subjecting them to potential harassment, misinformation and exploitation is selling out.