It was working up until just recently. I’m assuming since the latest Gravity Forms update. We will look into the issue and push out a fix.
I wouldn’t call the current implementation stupid as it actually give the user the most flexibility. Blocked domains are not set at the form level but rather the field level. This allows different domains to be blocked in different email fields on the same form. Now having a form setting or even a global (all forms) setting might be a good addition.
We provide this plugin free of charge and do our best to maintain it. Please be patient and respectful and we’ll get this fixed shortly.