They don't have any stakes in it; I literally see them playing with report buttons for memes and find those events on relays. Some of them even use the report button to flag posts (like hard comment), not with the intention to censor that person for their entire follower base. You are assuming that without any context.

Yeah there may be some cases but not all. You will find so many examples of abuse or misunderstanding around this feature in this comment section. I was just talking to a guy here few hours ago.