Yes, I would use entities if I were creating the level myself.
The whole reason for this request was so I would be able to support editing blocks in my level editor.
I wanted to load a level, read the blocks, create entities that represent those blocks (same position, vertices, skins), use simple functions like 'ent_setmesh' to change those entities, and finally write the entities back into a .wmb file as blocks (using simple IO).