My understanding is that they dont move on profanity except in certain cases such as: Harassment (well duh), excessive use of profanity, and the use of very specific words (typically regardless of context. N-Word comes to mind).

Theyre not banning people for saying the d word, or c word, or f word here and there. Theyre doing it when you use it excessively, use it to harass others, or when you use those extremely naughty ones that people lose their shtick over. And the people Ive ever heard who complain they got banned for cursing almost always say that "I only did once! Honest!" Nah, most of the time theyre cursing worse than sailors in a storm, or theyre going after someone hard. GMs arent going to waste their time banning someone over the F word being said like "Man, that makes me f-ing happy. Thanks man!"

The filter, btw, is to filter out those occurances when someone does curse.

Granted, I actually agree with the premise of the rule change. If you shut off your chat filter, you are willingly exposing yourself to the profanity so the report should fall on deaf ears if youre reporting it for that reason.