Masked diffusion language models (MDMs) have recently emerged as a promising alternative to standard autoregressive large language models (AR-LLMs), yet their optimization can be substantially less stable. We study blockwise MDMs and compare them with AR-LLMs on three controlled tasks that stress different aspects of structured generation: in-context linear regression, graph path-finding, and Sudoku solving. We find that standard random-masking MDMs fail to reliably learn linear regression, exhibit high variance training dynamics on graph path-finding, while outperforming AR-LLMs on Sudoku. To mitigate these instabilities, we propose two locality aware blockwise models, namely Jigsaw and Scatter, that inject left-to-right inductive bias by enforcing autoregressive locality within blocks while preserving iterative refinement at the block level. Empirically, Jigsaw matches AR-LLM stability on linear regression and remains strong on Sudoku, while Scatter retains diffusion's planning advantage on path-finding. Our results indicate that standard random-masking MDMs, even with blockwise variants, may be a suboptimal instantiation of diffusion LMs for ordered generation, motivating models beyond random masking.