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I'll block a retractor because life is too short and I don't play games. In the OP case, it's obviously a mistake. But otherwise, I'll block you. When my revenues get to the point of Macy's, I'll change my practices.
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+1...A bid retractor is usually a problem bidder. Online auction houses (Huggins & Scott, Robert Edwards, et al) do not allow bid retractors. Why should Ebay be any different. If someone retracts a bid with me and doesn't rebid their "proper" bid, then YES, they will get blocked. They are abusing the bid retraction policy and we don't allow that. Now if only Probstein and PWCC would follow suit.