Is this becoming common practice to just deny entire IP address blocks due to listings on spam databases?
No. But more and more people are doing it. What is happening is that people get so frustrated with spam (usually when they are using anti-spam software that isn't as effective as it could be, either by design or due to misconfiguration) that they just start blocking anything that "seems right" -- typically using just the name of the spam test ('BLARSBL has "BL" in it, and so does "RBL", so it must be good!' type of logic). But fortunately, it seems that this type of problem only occurs on a small percentage of mailservers.
Note that BLARSBL doesn't list IP blocks (AFAIK), but there are some that do (such as FIVETENSRC, that IMail v8 anti-spam included by default for a while).
-Scott
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