Earlier quoted context omitted.
Can you name a single moderation system that operates on this scale that will not automatically ban someone for getting mass reported? This is a fairly well known phenomenon.
That's obviously not what's happening here though. I have plenty of adult friends who go on public and private servers and actively trash talk during games and have never been banned. And none of their friends have been banned. A small group of 10 year-old children aren't having a coordinated attack of hundreds to thousands of reports against them repeatedly over many months. Not to mention tacking on the requirement…
As a side effect, if you or your child are a bit inconsiderate during a tense moment of the game and someone gets mad back, with a press of the button they can block you from ever playing by reporting select words to game publisher. You will not be entitled to refund. Would you say that if this was not abused in a couple of months then it's definitely OK and we shouldn't worry about it?
Minecraft was sold as a game set. There are paid official places you can go play it now, but buying the game set does not require you to use them. Do not mistake it with Roblox, that one is both a game cafe and a game set.