It wasn't that long ago that Ryan Pepiot seemed like a guy that could cement a spot in the Dodgers' rotation for a long time, thanks to a fastball/changeup combo that looked ready for prime time. It also does seem a bit silly to consider him "blocked" when a team can never have enough pitching; the Dodgers' rotation does not looking imposing right now or in the immediate future. However, follow along for just a bit.
First, Pepiot is hurt right now, as he has been rehabbing from an oblique injury. He is finally throwing to live hitters again, but he is still a ways away from taking the mound again.
He also isn't the cream of the crop of the Dodgers' starting pitching depth in the minors, as Bobby Miller and Gavin Stone are arguably better pitching prospects, and folks should not be sleeping on Nick Nastrini if he sticks as a starter, either. The Dodgers need high-end trade capital, and Pepiot seems like an easy sell as a plug-and-play big league starter once he gets healthy.