Opt not to italicize block quotations
One of the reasons is that for Chinese, italic doesn't actually exist (before computers), and it would be better to use a different font (usually Kaiti) for such effects. I can live with just being able to disable italic, as a simple toggle in settings.
In addition to this and proper indentation (already suggested), perhaps make the block quotation inside a box with a grey background (as sometimes in wikipedia), instead of make the text grey, which may be hard to read.
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