Basically, the internet stepped in, and "this is why we can't have nice things." I would have killed for this system back when I played Dystopia. (To be fair, I did have something similar in the form of a banhammer, but man, I had to fill out webforms and forum posts to use that!)
It makes sense to me that if person A reported Person B for toxicity, then yeah, alter their match-making. But it shouldn't be something that's publicly known. To me, I like the idea of a "Avoid Matchmaking" function. I don't want to be paired with the toxic and the trolls. But at the same time, I've yet to come across that person in OW. I think it's largely because that to enjoy playing a MP game, I need to play with friends. People I know are dependable. People I can talk to, people I can joke with. If I don't have that social aspect, when what's the point of a MP game?