My street is very crowded as well. if that blocked spot is keeping me from parking on my street I like to think I would try the friendly route, commiserate with my neighbor about our shared situation, and how frustrating it is.
More likely I would stop my car, lift the containers onto the sidewalk and proceed to park my car. She knows what she is doing isn’t legal. We’re all in the same crowded boat so maybe it doesn’t have to be conflict. More ‘hey I know this sucks and I need a place to park too.