In the server chat I've seen people idly threaten to report others for supposed verbal abuse, when in actuallity is a topic or discussion that the persons engaged simply disagree.  I know a few who go out of their way to report people frequently and it has had a chilling affect on the server for that chat, so here's a recommendation that might fixed that.

For the person who is reporting another in chat that person should be given an option to block that person they are reporting, for example "You are reporting a person in Chat.  Would you also like to block that person so that you will not see their conversation in anymore?  Y/N."

And for the person that who was reported they should see a prompt giving them the option to block the person who reported them, for example "You have been reported by someone in chat.  Would you like to have that person blocked so you will no longer see their conversation anymore? Y/N." 

Now, if both chose "Y" problem is solved.  Each person will not see each other's conversation and they can both coexist on the same server without one feeling offended.  Obviously for the person being reported they would have on the block list "Annonymous Reporter Blocked" so as to not invite reprisal.  On the other hand, the person reporting the other opting to block would see on their block list the player's family name and that they were blocked due to reporting. 

This should curtail abusive reporting in chat, for one if a person repeatedly reports the same person and choses not to block that person, it is obvious that the reporter is trolling and abusing the report feature.  If that person frequently uses the report feature on others that person may find themselves isolated on that server as the reported person may have opted to block them.  Either way the person doing the reporting may think twice just because their feelings got hurt.

Now, there could be a feature by either player (as it is now) to reverse the blocks, or this feature could be employed on some of the more "troublesome" servers.  I will also add this does not dismiss any aggregious comments that would violate PA's ToS like citing a racial slur against someone, but disagreements are bound to occur with some being overly reactive to a comment.  Afterall, what one person might find offensive might agree with another, but the offended person, might take action to report the other.  For example, discussions on current affairs, news etc., may not violate ToS, but people will naturally disagree on the discussion with some choosing to agree (or disagree) with either in the discussion.  The worse that can happen without this system would be people leaving the game accusing it for toxic players (when they are not) or for censorship in having differing opinion.

Either way, I'm certain PA is getting tired of the flood of reporting ever since they put this feature in the game, and its probably getting desparate with vetting all those reports.

PA will restrict accounts for baseless reports.  Simply because someone claims they will report doesn't mean they do.  PA has ways to deal with people who abuse the reporting system.  WHen I report someone, I cite the specific operational policy violation that I believe a person has made.  I stick to the standard ones - homophobic, racist, antisemitic, etc.  Simple disagreements don't merit reports, I agree.  I disagree with your suggestion however, because it would impede legitimate reports, and because PA can already easily deal with based reporting.  No one should get away with racist slurs.

I only report for "gamer" words for black people, and I still see the same people spamming the same "gamer" words at Garmoth and elsewhere.  Even if they are abusing the system since the "gamer" words are not even having action taken against them, the abuse of the reporting system is a non factor.  It seems like just another placebo to get people to stop complaining.

Yeah, I don't know what problem the OP is trying to solve.  If PA sees an issue with frivolous reporting, they will deal with it.  I've never had any issue with PA dealing with racist slurs....often very quickly.

The problem is some people have become self appointed nannies, who think they know better than someone else and their frequent reporting has caused a chill effect on the chat channel.  This is a way to use blocking, already a feature for a user, to avoid having their conversations read by someone taking offense.

Okay.  If the feature I described was in place then you would have the option to block people at the time you report them.  If you chose "Y" then guess what you wouldn't see their "spam" any more.  If you chose "N" and continue to report them each time then you're acting as a nannie enforcer and you want to see if PA is going to chat ban them after you had reported them.

Lol.  Still not seeing the problem.  Is PA expressing issues with too much reporting?  Where is your evidence that it is being abused? They warn that abusing the reporting system will result in penalties.  I see no issue.  If people are afraid to post racist, homophobic or antisemitic trash, etc.  GREAT.  WOrking as intended. Simply offending someone isn't bannable.  The terms are spelled out pretty clearly in the Operational Policy.  I have no problem with people reporting legitimate violations.  Call me a nanny.  I don't care.  I am glad to do it.

I think we need more chat blocking.  It's a feature already in the game and it should be encouraged under the right conditions.