We shouldn't discourage people from reporting to FediBlock
I'd remove this part: "Be aware that this approach is disputed under certain groups and sometimes not followed/supported by projects like The Fediverse-Friendly Moderation Covenant (see point 4 "We won't recommend blocks")."
The people who don't like blocks are usually those that misunderstand Free Speech.
I understand. Even then though, FediBlock is not everything but also not nothing. If we assume someone is on Pleroma, federating with mostly non-Mastodon instances who aren't participating in or giving any attention to FediBlock, wouldn't this give them false sense of hope of their peer instances going to moderate that instance?
This would be one reason, where I think it's important to also mention, that FediBlock is a voluntary project and that there are actually instances who block instances on their own, without following any block list.
It's irrelevant which stereotypes or demographics likes blocks or not, but it's necessary to reveal that Fediverse's moderation is different from one instance to another.
How about you suggest an alternative to this sentence instead of completely removing it outright?
Be aware that reporting an instance to FediBlock doesn't necessarily mean that your instance will block that instance. There are instance admins and moderators that don't like blocking other instances and there are admins and moderators that make their own blocklist independent of FediBlock. FediBlock is a group of volunteers and not an official authority of the Fediverse.
You can however follow the FediBlock blocklist and block those instances on your own.
I think this is a good suggestion.
Although I ask myself where to mention the Federation Covenant that a few instances (even Mastodon ones like koyu.space) are following. [Maybe in another page related to moderating your instance as an admin?]
In my eyes points 2-5 of the Federation Covenant are all bad suggestions. Those are not suggestions for "friendly moderation", but for little to no moderation.