Google Hangouts has been a sore point for many Android users, but with the recent integration of SMS and chat in the same view, things are getting better. With the new update to Hangout to v2.1.223 you get custom ringtones for individual contacts and while blocking contacts was already available you can now see block lists which shows all the contacts that you don't want to talk to.
You also get a new feature, hidden contact list which will let you see those contacts which are hidden from the main conversation list. All you need to do is long-press on any Hangout contact and then select "Hide Contact." That person won't be shown in your main conversation list but in the hidden menu from where they can be restored as well.
At present the update is not yet available, but it is expected to roll out soon.
