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got my point cloud into the drawing and setup the section plane but using SECTIONPLANETOBLOCK gives me an empty drawing - is it possible to generate sections from the point clouds?
Yes, it is. You can use POINTCLOUDPROJECTSECTION command. Keep in mind that this command needs to be performed on a section VOLUME, which basically projects all the point of the point cloud inside the volume onto a plane and creates a raster image.
So just make a BIM section, change its state to volume, and make it a thin volume (like a slice). Then run POINTCLOUDPROJECTSECTION to get an image of the section.