While I think user based moderation is needed, I do not think these (public) moderation lists help.
Attaching a label to a list of names in public is highly problematic and an invitation for abuse.
I donโt even think moderation lists are that useful when you consider that you are giving away your accountโs ability to block anyone to another single person (who you donโt know or who may get hacked).
Itโs nice to democratise moderation. But clearly the approach Bsky takes isnโt good.
This could easily be solved by making moderation lists private, IMHO.
This will still allow for "moderation services" and importing lists manually etc, but remove the abuse vector via attaching negative labels in public.
I've said that lists are a tool which will be abused since the start. Any online community that had public "blacklists" eventually degraded to a point where the only solution was switching to "whitelists".
I think this can still be salvaged, but needs a bit of rethinking: I'd make lists primarily private as a way of privately tag why I want to avoid this person, and keep public lists as a separate feature but with more limits/transparency/oversight