Does guest-fsfreeze-freeze block writes?

So let's say I'm hosting several hundred websites in a VM - they will still be able to upload/delete/change data during the whole snapshotting operation (save for a second or two as you say)?
 
Great - it also makes sense.
It would be unfortunate if the entire VM was frozen for the entire duration that a backup takes. Let's say you back up terabytes of data, then it would be frozen for a little while. So it makes sense that it's only while the actual snapshot is "taken" that you might experience hiccups.