Honestly, it's not the report system that needs work.

If people actually got banned when you reported them the current way of things would be perfectly fine, but the STF either doesn't care or thinks they have better judgment then the player base when you can have dozens of people reporting the same individuals for botting and still have no action taken.

I remember a little story of how it took a collective effort from several players over a period of months to get someone who was blatantly speedhacking in PvP a mere temporary ban and even then I think it was largely due to them eventually forcing the GMs to step in and do something because the STF wouldn't.

They have a team is both faster and more reliable then the STF at issuing punishment for the fields they do enforce, so I don't know why they don't allow the GMs to take charge of things.