Unless your iPhone somehow got restored, and needs to be activated again, blacklisting really does not limit the iPhone features.
BLacklisitng is a carrier event where the imei is added to a list of devices, and if found in that list cannot get service from the original carrier or any carrier with access to that list.
As long as the iPhone is accessible to you, you can use it in whichever way you want to, except it won't have cell service.
Blacklisting does not in any way block the iPhone from actually working.