Allow non-outline (freeform) text

True. Agreed. Hence my earlier statement …

(i) Users who want # Headings hierarchy can use that exclusively.
(ii) Existing users of - Bullets hierarchy can also stick to using that exclusively including - # bullet with headings blocks.
(iii) Hardy users, long document writers, experimenters can go the mixed # and - blocks ways. Including the intricasies of relative indentations of - bullets under # headings. Note relative indentations intricasies already applies now in v0.2.5; where all # headings are considered top level.

The following is raw results of my exploration in MD format. Cut&paste into a Logseq MD file. My main interest is to see how typical usage of headings in markdown files can be incorporated in current Logseq v0.2.5 and/or any needed modifications. Seems to me it’s already reasonably useable from the example below.

# H1
Having #H followed D hierarchy is okay
- D1
	- D1.1
		- D1.1.1
# H2
Having another #H followed by D hierarchy from top level also okay
- D2
	- D2.1
		- D2.1.1
# H3 
Having another #H followed by D hierarchy starting from second level **also okay**, Logseq treat #H heading as parent of level D3.1 block. This give folding capability for headings that @pihentagy requested, but using the folding capability makes it into a `- #` block.
	- D3.1
		- D3.1.1
# H4
Having another #H followed by D hierarchy starting from two levels down **not okay**,
		- D4.1.1 ... Logseq `tab` interface doesn't allow this skipping one level, it dislay wrong level. Editing any associated level will reformat/remove the extra level.
			- D4.1.1.1 ... display wrong level
- D4X ... can skip levels when jumping back up to top level.
- # DH5
Mixed `-` dash and `#` heading hierarchy.
	- ## DH5.1
		- ### DH5.1.1
		- # DH5-1
		- #### DH5-4