The modular concrete retaining wall blocks can do some impressive things IF they are built to the block manufacturer's specifications. Many times they are not and people blame the wall material. I work in an engineering and architectural office and have drawn plans for several such wall and they are still doing well today. There is one that has a driveway just a couple of feet back from the edge of the 10-12 foot tall wall and even with the daily vehicle traffic it's holding up well 15 years after it was built.
As was mentioned by nwngunner, frost action needs to be taken into account and along with that, drainage is important. The wall backfill needs to be granular material that will drain (not too many fines) and drain tiles need to be installed at the base and possibly at higher elevations as well.
One thing that is super critical for the actual soil retaining properties of the wall is the use of geosynthetic mesh fabric extending well back into the hill, anchored to the retaining wall and anchored into the hill with well compacted granular material that interlocks with the geosynthetic.
Keystone is one manufacturer of modular concrete retaining wall blocks and they have some very good information about how to properly design and install their product. You can get a good idea of what to expect by looking at their installation instructions you can find on this page:
Keystone Retaining Walls
Disclaimer: Other manufacturers will have similar, though probably slightly different, instructions and requirements. If you go this way, be sure to read and follow the correct instructions of the manufacturer of your retaining wall blocks.