I agree that players that violate the rules, including chat rules, should be reported.
What makes you think that those 5 people are reporting a “random person” that committed no violation? What makes you think that those 5 people are not coordinating to target a specific and non random person? What makes you think that 5 people submitting reports are “random” players with no prior connection?
The system is being more than a little abused in RBG’s. The abuse not being as prevalent in arenas is probably due, at least in part, to the lower number of players on a team in all but one bracket.
The system is being abused now to remove competition when selling goods or services.
Is it being abused to remove competition to the extent that it will likely be abused in Classic to remove competition? No. There are significantly more players that are “self sufficient” with massive stables of alts, even spanning multiple realms in some cases, covering all professions at high levels. Add the fact that enchants can now be put on vellum and sold on the AH, sold to other players or mailed to alts and one can even be self sufficient with enchants.
In classic, it will be a while before most players have a large enough stable of alts covering every profession at high levels with the sought after recipes that they can be self sufficient. Even then, they cannot be self sufficient for enchants.