Hey syzo, that's actually an idea that's been popping up a few times since all of this started. I suggested the same thing yesterday or two days ago, and wasoxygen had a great and more expansive post on a similar idea. I think you'll find that post interesting.
Yep! I've read that post. I had the general idea before s/he posted it, but I think that post solidified my thoughts. I think nuking the reply tree of a muted user works better, though, rather than showing the link and reply tree. My suggestion would result in something much more similar to how it works right now, from the muter's perspective.
I saw that you shared it after my reply, should have checked that before! Hm. That's an interesting take on it. I think if the default is to nuke the chain, there should be an option to show it but still not have the muted users comments at all.