Is Pyromancer getting a perm ban for having Dalamud?

[QT_Melon]

should there be a penalty for abusing the report system like this?

If the reports are not valid, yes. They can ban your account. If the reports are actually valid. No

A mass report doesn't ban you from the game, an investigation on the allegation and verifying the rules were indeed broken, will. A GM can act on 1 report and ban you if you broke said rules, a GM can also act on 500 reports and ban you if determined you broke the rules.

A GM cannot act on 500 reports or more if you didn't break the rules.

A GM CAN act on the people reporting just to report because THEY broke the rules on how to use the report system to target someone who did not break the rules. And they have acted on it as well.