Do you think that the report abuse on should be taken out?

Keep the system and actually make it tougher. For example, an avatar game should be an immediate suspension. According to Yahoo, 94% of the reports sent in are actually correct. For a user moderated system, that is a great success. The problem is not the system, it is the users that do not play within the rules. It is the rules users don't like, not the reporting system. Most that complain want YA to be a chat room. There are thousand of those, but few good Q&A sites. A Q&A site must have rules and those rules must fall on the conservative side. If these users would admit this fact and go to dizzay.com, YA would be better. Dizzay is just like YA, except no rules. It is basically a chat site which is what you get when you take the rules away. Take a look at it and if that is what you want, give it a try instead.