I’ve never used report event so I’m not sure. I guess it depends on who the event gets reported to and what gets done with it. Is it a developer-curated mute list that applies to everyone using that client? Or get passed along to relays and they use it to blacklist bad actors?

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It's a public event, anyone can create and publish, and relays and clients are free to interpret how they see fit

I wouldn’t be surprised if relays are manually curating mute lists and using event reports to help them.

Centralized manual curation of something that yearns for decentralized curation. A losing proposition. Like in the last season of Halt and Catch Fire (they were trying to curate the web manually, pre-Google.)