I was missing the proper Sonata admin configuration to allow this. Thanks dbu for pointing out that it works in the sandbox.
sonata_doctrine_phpcr_admin:
document_tree:
...
Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\ReferenceBlock:
valid_children: []
Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\ActionBlock:
valid_children: []
Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\SimpleBlock:
valid_children: []
Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\SlideshowBlock:
valid_children:
- Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\ImagineBlock
Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\ImagineBlock:
valid_children: []
Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\RssBlock:
valid_children: []
Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\ContainerBlock:
valid_children:
- Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\SimpleBlock
- Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\ContainerBlock
- Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\ReferenceBlock
- Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\ActionBlock
- Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\SlideshowBlock
- Symfony\Cmf\Bundle\BlockBundle\Doctrine\Phpcr\RssBlock
...