I don't disagree when it comes to comms, but with instance bans there can be no interactions even on 3rd party places and you can't even block users of that instance effectively (on Lemmy at least, which also has no other indication) Which means you must keep a mental note that a thread or user would be a waste of time replying to.
I mean if the instance is small enough that won't that much of an issue, but still.
EDIT: And as I hinted at in my original comment, that modlog actions may not federate over (I assume because different fedi architecture) can make it basically a shadow-ban.