Not to mention tacking on the requirement that instead of a bunch of 10 year-old children being - as they tend to be - offensive/testing limits when adults aren't looking, Microsoft is publicly lying to their customers (creating liability) and implementing an automated system so poor it doesn't so much as check if the reported user even uses chat.
EDIT: To further substantiate what I'm saying, I just checked and you cannot submit a report without selecting the specific messages that relate to it. The UX requires that the individual messages are selected and cannot be submitted empty. The parent is at least being misled in thinking their child or their friends don't use the chat feature.
You know they are likely playing with a large group of other 10 year old children right? There’s going to be at least a few amongst them that just think it’s fun to mass report everyone that says anything marginally inappropriate.
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.
To be mass reported, you need to be on a server with all the people who want to report you.
Honestly, Mojang built this system well, and seeing Hacker News full of assumptions is really disappointing.