This idea has been developed and deployed to Canvas
Ability in gradebook to mute an assignment to be instructor specific in cross-listed courses. For example a course with 7 instructors and several sections, when one instructor mutes an assignment for grading it mutes the assignment for all the instructors and sections. It blocks all students from seeing regardless of section. The teacher privileges under settings are set to "this user can only view students in their assigned course section(s)" but it doesn't seem to apply by section to muting.