Reporting right now is just a bit of a lengthy hassle. People have to really act out for most people to bother with it, although obviously you have people that will report for every little thing or people that witch hunt with it.

This is an issue though. SE doesn't like to tell you to provide evidence when people get warnings or banned, and for good reason. People would probably use said evidence to turn around and harass those that they think got them banned. They might not even do it in-game, they might take it out of the game that way SE can't do anything further to them for their misbehavior.

This can leave some people confused though. There's a lot of different things you can report people for that don't require them to talk or even interact with others. You could be breaking the rules for months, or even years, but until someone decides to report whatever it is, nothing is done. This can lead to people being confused about their warnings/bans, but also this can lead to people feeling like the GMs pick and choose when to act.

tldr; I don't think people realize the amount of public rule breaking that goes on that no one bothers to report most of the time because of how bothersome reporting is right now. It'd be better if we made it easier to report, that way people would report those things on sight, instead of it being held over peoples heads later on.