In my opinion it does in this case. If you simply say, "People think in blocks," it would be taken as an analysis of the individual's thought process. How do people think?
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Newguest-- Does "in blocks" mean "as a team"?Right. I don't think the implication is that people assemble as a group for the express purpose of creating a block of mental energy. (Although I have heard of experiments performed along these specific lines.)