I feel like you could make a system like that self-sufficient too, like if a player is reported for speed/health/wall hacking X times in X minutes in X level, trigger it to automatically warp them or remove them from a spar queue? Clearly that can be abused, but you don't have to announce to players that this measure even exists and punishment for abusing it would need to be severe. That's just an idea to explain what I mean though, not something I expect to happen.
But yeah, I think a remake of the report feature with option-based reporting would allow for a little better handling of these issues. Like I said, harassment-based reports can basically be self-solved simply by triggering an automated block of the player immediately when reporting them. I'm sure there are other crafty ways you can use it. I dunno, but sometimes the current reporting system feels like a placebo.