Ya, it's almost impossible to run with pugs since there's a good chance someone will get upset or embarrassed by something they did and instead of owning up to it/getting better they'll instead refuse to continue. In situations like those what do you do? Sit there until someone, if anyone leaves? Be the bigger person and leave yourself and then sit around and wait out the 15 minute timer? Try and continue on? None of these are good options, but a kick feature would be a simple solution.
As far as maliciously using it, I can see the concern but just make it so that you can only kick after the first boss pull or something. That way you don't have premade groups queueing and kicking a healer immediately if he's undergeared or something, but allows groups to switch things up if one person is keeping the team back on a boss fight/midway through dungeon.
Not sure what the exact solution may be but it's certainly not how things are right now. This needs to be fixed and soon.