We're on the same server, we've both been there for about 7 years. Imo, you're making up issues that aren't there.
It's extremely rare to see chat "out of control", and in these extremely rare cases, some mod is usually quick to stop it. Also, general chat can be silent for several hours between comments. Still you call this a really big issue? Stop exaggerating!
And btw, auto-ban based on reporting has been exploited enough in other games. Need an example to how to do that in this game?
You're trying to sell a loot spot, someone is underbidding you, then you have all your guildies reporting him -> competition gone.