Eh whenever a Report function is implemented some mouthbreathers abuse it to grief legitimate players. So I am very much against this proposal.
The only way I would be for it is if it had very limited options, off the top of my head "Botting" and "Exploiting" and that's it. Roping, BM or whatever is annoying but just laugh at how petty they are and move on. And even with such limited options Blizz should be damn careful to make sure botting or exploiting actually happened before they act on it. The thing I would absolutely hate is a "Toxicty" reason to report, I know of many cases where decent players were permabanned over BS so heck no, keep that cuddle culture away from HS.