Can you monitor its traffic and block by IP?

I’m sure you could. At what point do you just rip out the thing that is trying so hard to work around your control of your network? An Apple TV doesn’t cost that much.

The door is slowly closing on all of these blocking schemes by moving ad content to the same domains as the primary content.

This is already a common feature for analytics toolkits.

I probably could, but haven't done so yet.