In the long run, the idea is to have block reference at the level of headings. We still have a lot of work to do ahead. We have to first improve the update mechanism when you rename or move files/folders, we have to improve the handling/update of heading references and then there is a lot of work to do on building a search/query language on top of it.
After that, you can have block references at heading level.
Right now, I think you can achieve block reference at file level.
My anecdotal experience in the chat and forum is that users coming from other file based zettelkasten software (The Archive, etc) are used to file level reference/blocks and are already okay(ish).
Users coming from Roam, who are used to a fine(r ) level linking/addressing/embedding, feel the pain.
Obsidian will get better, it’ll take time, though.