Some people are just prudes. For the most part you won't be impacted by these reports. It mostly signals to their web of trust that there is content perhaps not worth viewing. I think they are misusing the report but you should have roughly the same reach.
Discussion
I think lists will be better for identifying NSFW accounts, and reports for alerting relays about accounts that violate their rules
It would be nice if we had more labels. E.g. 1. Graphic material 2. Suggestive 3. Adult/Porn
A user could select an option to hide the Adult content if they chose to not want to see it anymore
in my vision of the nostr algorithm™, there will be as many labels as users decide to label stuff with. so from my perspective, I may choose to simply label something nsfw, and this helps other people who would rather not see that in their feed. other people are free to create more specific labels, like furry or whatnot, which helps people in those communities find more furries
I love this!