The only thing instance blocks are good for is keeping known bad instances out of your federated feed and mentions.

They are not a panacea, and they don't deter any motivated attackers, as they don't work against moving targets. They also don't stop nasty people from looking at your account and posts.

Somebody with a few domain names (50$ gets you a lot), docker, and a list of victims could do a lot of damage on here.

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And there's nothing you can do about it

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ni.hil.ist

ni.hil.ist is a server run by individuals who are friendly to a nihilistic worldview.