Should I have reported this?

[Renalt]

I would've just replied "And still out of your league, kiddo", and left the duty.

[tsuchii]

I'd report if that happens to me. My character is the best looking. I would throw hands for my character. How dare anyone say that. LOL
Kidding aside, it's hostility and should be reported. Let them taste their own medicine. Make sure to blacklist so you don't see their chats anymore next time you two match on duty finder again.

[Reimmi]

Nah. move on you'll never see them again. it's really not worth the trouble on your end

[Ath192]

2 days ago I queued for The Dusk Vigil (with my alt character, as a DPS). After completing the duty, just after I posted a "thank you" in the party chat and did a player commendation, half a second before I clicked "Exit", one of them obviously felt the need of typing this in the party chat: "UR CHARACTER IS HIDEOUS" (yes, in caps). I don't know if he meant me (my alt is a female Roegadyn) or if he meant someone else in the party. It doesn't even matter if I was the target of this. No one should be the target of insults, be it about race or outfit of their character.

I'm not trying to be "snow-flaky", but is this what FFXIV has become? I didn't see this kind of rudeness before in this game. Where did this behaviour come from?

After I had clicked Exit and realized how rude that player's text in the party chat was, I wasn't sure if I should report him. Should I have? Should I report next time such a thing happens?

That depends. Is your time worth less than filing a banal report over a perceived offense that may get nowhere? If yes, then file the report and be extremely specific why you felt targeted. If you have better things to do then no and move on with your life.

This is extremely snow-flaky, because you are not even sure who this was said to, so if it wasn't targeted at you then you are just looking to be offended on behalf of other people. So you may not be trying to be a snowflake but this is snowflake behavior. I agree it was a comment in poor taste however, but no, I wouldn't waste 2 seconds of my time reporting this person, let alone write a forum post about whether you should.

[Doozer]

It is something you could report someone for.

The section that could be applied from the Prohibited Activities page:

It is prohibited to make offensive expressions such as those listed in the following examples. If a report has been filed and the prohibited activity is confirmed, a penalty will be issued.

Please note that Square Enix may issue a penalty at its discretion even if a report has not been filed but the act was found being conducted in public areas such as Say and Shout, search comments, Party Finder, and online video or streaming services.
* Please note that these are just a few examples. Be polite to others and try not to make them feel uncomfortable.

Examples
The following behaviors are prohibited:

Using insulting words such as "stupid," "idiot," "die," "crazy," "garbage," or "trash" to offend others. In addition, even if you do not use direct words, blaming and attacking others, such as "It's [player name]'s fault that we wiped" or "You really make a lot of mistakes," or rephrasing insulting words into any other form is also prohibited. If a report has been filed and the prohibited activity is confirmed, a penalty will be issued.

Insulting another person's personal taste, such as "your glamour is terrible, you should quit the game," or "the way you talk disgusts me." If a report has been filed and the prohibited activity is confirmed, a penalty will be issued.

Insulting others with statements that are unrelated to the subject of the discussion, such as "no wonder you can't do this, look at how you dress your character." If a report has been filed and the prohibited activity is confirmed, a penalty will be issued.

Whether or not you report something is your choice, but know that insults are generally reportable, even if they're just "you look stupid lol". Don't let anyone else influence your decision to report someone if you feel they were in the wrong. Even if it's not against ToS, that's up to the GMs to decide, not forum users.

[Supersnow845]

In general the reportability of a comment that has no defined target is extremely shaky unless it’s something like racism or an attack against a real world protected class that is shouted in limsa

You don’t know if he was talking to you so no reason to take insult over it, if we continues doing that sort of stuff eventually he will say something targeted and that becomes an easy report if the person feels so inclined

My opinion on the matter is 14 players have skin like paper but that’s totally beside the point

[kcj]

Perception = Reality.

If you feel it was directed at you, then it was. If you feel you should report it, then do.

Personally, I'd shrug it off as people being jerks. Anonymity (like on the internet) tends to bring out someone's true character...and you'd be amazed how many jerks there are....

[Alleluia]

Perception = Reality.

If you feel it was directed at you, then it was.

That is literally not true. If you feel it was directed at you, then you feel it was directed at you. Feeling something doesn't automatically make you correct.

[Ath192]

That is literally not true. If you feel it was directed at you, then you feel it was directed at you. Feeling something doesn't automatically make you correct.

I just want to massively agree on this. That’s some serious main character syndrome up there.

[SturmChurro]

Probably going to be an unpopular opinion but that's never stopped me.

1. Probably not reportable.

2. If it is i wouldn't think it's worth the time.

3. If it is worth the time...grow thicker skin. If you are offended over someone saying your pixels are ugly then you would not survive a day in retail. Or being outside for long. You'll just be a big ball of "offended".

I think this actually is reportable (and actionable). I'd have to go back and read the ToS though.