Yes, this is a useful function that you can delegate to your social graph.

E.g. if an npub got 10 mutes from the set of npubs that are 3 hops away from you (follows, follows of follows...), then it's muted.

However, I think about the other way around. Everything that is not in the whitelist is not shown.

Whitelist can come prepopulated by social graph (again, think about all npubs from 3 hops from u)

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I don't like the other way, because there we have problem with discovery of cool people.

That's something I'm trying to tackle, especially in situations when you can't use your real world social network (like an anonymous project).