I'm surprised we haven't seen the "AI-powered" uBlock Origin of video yet. Not blocking by the web request but rather by analyzing the video signal itself. Or even a nice appliance-tier solution. I want to buy an HDMI splitter that when it sees an ad coming through Input 1, switches to Input 2. Switches back to Input 1 when its over. For folks still stuck with cable TV this is Nobel Prize territory.
I've looked multiple times for something like this that I could load onto my nvidia shield, but nothing seems to exist. There is a tool available for chromecast that works very well, but my ideal solution would be an app I can load onto the shield that auto-mutes during ads and un-mutes when the ads are finished. If I didn't already have my hands full with side projects, I'd dig into this on my own time.
I'm in the process of releasing a video player with adblocker for live IPTV on android that can definitely auto-mute the whole adbreak for you if you watch the stream in the player (see my previous comment for link).
But if you are suggesting a system-wide mute triggered by a dormant app as another live broadcast plays in some official app then that's easier in some respects and harder in others because people need to trust the data is accurate. Once we have enough users sharing accurate adbreak data (powered by accurate software with human corrections) we can offer a system-wide mute for ads in any other app playing those known broadcasts.