I once tested it. If you place elements inside the gravity blocks, they aren't affected by the gravity grind changes (they are only affected by the gravity mode (W)). Basically, if you place elements in the gravity blocks with vertical gravity and a bhol out of the gravity block zone, they will fall down instead of go into bhol.
Yea, if you cover the whole screen with gravity blocks, newtonian gravity doesn't work anywhere.
Edit: cool, I didn't know it could block gravity like that, box.