This is a very important point IMO. Taking proper notes also means that I have to think more about what I want to state with this note. E.g., being forced to write a title for the note means that I have to come up with a short summary (or core statement) of what this note is about. IMO, performing this little extra step is truly helpful in the long-run, since it helps to increase the clarity of my notes, and sharpens my senses.
This is even more true for the act of “transcribing” the note’s thought with your own words in the comments of the note.
In addition, I think it’s important that I can reuse my notes in external applications. With block references, unless it‘s a software agnostic implementation, this may be tricky.
Also, what happens if you’d like to expand on a block, and convert it into a proper note? This likely would require the app to help you with converting all the links to the block into proper note links.
Block references are surely nice for quick reuse of little bits of text. But they should not replace the creation of proper atomic (& self-contained) notes. Long term, the latter will likely help you better to achieve structure & clarity in your notes archive.