As i said, i thin that if you put me on ignore, you should not see any of my content, not the other way around. Because you are the one ignoring me.
What you want is the ability to "hide" from someone, not to ignore someone. As i said these are two different features. I am not saying the "hide" or "block" feature is not worth it, it definitely is, but it should definitely not replace the "ignore" one.
You are right, activity from people you ignored should definitely not appear in your activity streams or notifications.