I understand your point, it may seem unfair that 5 accounts with many followers create a small group that massively impact your reach. But the group in question is “people following the ones who don’t want to listen to you”. What do you think would happen if this feature did not exist, people magically tolerating your opinion? Mute list, as a system, existed long ago before nostr, and for one simple reason. There are not a nostr dev decision, but a needed social protocol.

Keep in mind that reports are public. You can always shame large accounts for reporting too much. Especially if it is unjustified. And other large accounts can also report the malicious large account reporters. That's the game theory of it. Reports have consequences. And if they are reporting unjustifiably, we all want to see it to reduce our trust in them.