Say for example that I block and delete a contact from my list. My name will still show in this contact's WLM. So if this contact right clicks on my name and selects "Profile", he/she'll be able to see my updated status and display picture in my profile's website. So unless he/she also deletes me, he/she'll be able to "track" me. Is there any way to avoid this?

I'm pretty sure that if you block someone they're unable to see any display picture/status changes via your profile....it just gets stuck at whatever point they were last unblocked