I think in the example, the bottom content being a little cramped wouldn't also be too bad depending on what this app was doing. As Jishnu said in his reply the context matters.

If this was a scrolling list for example and there were more blocks after the one cut off at the bottom having the extra space would be helpful. The extra margin would make it easier to see where each new block started and ended when scanning the list. It could also help make sure you were touching the right block when trying to select one too.