There is absolutely no chance in the twelve that an in-game bot reporting system would be abused by other players; players would never just mindlessly report every player they come across- flooding the system, making it incredibly difficult for actual human beings on the SE staff to spot check each and every report that comes through.
People here are way more responsible then to abuse a system like that.
Right guys?... RIGHT?
Sorry, on a serious note; i don't trust the userbase here with a system like that- i don't mean to dismiss or shut down the idea, it's just....
..I don't trust people to be that responsible, in any MMOERPG environment- but that's just me, I have no idea what SE thinks about this topic.
I've seen this type of system abused a number of times before in other MMORPG games in the past.
The current system to me; personally- feels like the best middle ground that exists, until something better comes along to replace said system.
EDIT:One more thing about the system, and the idea of "players being watchdogs". We have a RMT chat reporting function because the player can prove that; a goldseller's weblink is about as definitive of a report of a player breaking the ToS as one can get, so that's very easy for players to circumvent and for the staff to check, because it's a chat log.
Bots on the other hand are a completely different story, because players cannot prove that a bot is an actual bot, it's just not possible. Yes there are things a player will pick up from what suspected gathering bots look like, we've all seen what those habits tend to look like, and our eyes and common-sense will tell us we are looking at something that is automated (a bot), but can we prove it? Sadly no we can't.
That's why i believe the reporting system exists the way it does, the team that handles this stuff likely needs more then a players name and someone accusing them of botting; they need a substantive reason to open up a case against a player for botting; that's would be why (i believe) the format of bot reporting does take more effort.