Blocks and functions in Modelica have some similarities and differences. In blocks, output variables are most likely expressed in terms of input variables using equations, whereas in functions output variables are expressed in terms of input variables using assignments. Given a relationship y = f(u) that can be expressed using both notions, I am interested in knowing which notion shall you favour in which situation?
Personally,
Blocks can be better integrated in block diagrams using input/output connectors
Equations in blocks can be most likely better treated by compilers for symbolic manipulation, optimization, and evaluating analytical derivatives required for Jacobian evaluation. So I guess blocks are likely less sensitive to numerical errors in some boundary cases. For functions, derivatives are likely to be evaluated using finite difference methods, if they are not explicitly provided.
on the other hand a set of assignments in a function will be most likely treated as a single equation. The same set of assignments if expressed in terms of a larger set of equations in a block will result in a model of larger size probably leading to a decrease in runtime performance
although a block with an algorithmic section is kind of equivalent to a function with the same assignments set, the syntax of a function call is favored in couple of situations
One can establish hierarchies of blocks types and do all of sort of things of object oriented modelings. Functions are kind of limited. It is not possible to extend from a non-abstract function that contains an algorithm section. But it is possible to have (an) abstract function(s) that act(s) as (an) interface(s) out of which implemented functions can be established etc.
Some of the above arguments are dependent on the way a specific simulation environment treats a block or a function. These might be low-level details not necessarily known.
The list in your "question" is already a pretty good summary. Still there are some additional things that should be considered:
Regarding the differentiation of functions, the developer at least needs to define how often the assignments can be differentiated (here is a nice read on this), as e.g. Dymola will not do it automatically. Alternatively the differentiated function can be specified manually (here). By the way, a partial derivative can be defined as well, see Language Specification, Sec. 12.7.2.
When it is necessary to invert a function, it can be necessary to define it manually. This is described in the Language Specification, Sec. 12.8.
Also it could be important that code from a function can be inlined, which should overcome some of the issues mentioned above, see Language Specification, Sec. 18.3.
Generally I would go for blocks whenever there is no very strong reason for a function. Some that come to my mind are the need for procedural execution, or for-loops.
This is just my two cents - more opinions welcome...