Reports are also contextual. There are plenty of people sending Nudity reports for things other people don't think it is Nudity at all.
Reports are absolutely the same thing as a bad reaction. They just use a different event numbers. But if you use them without interpreting what the user was trying to say, you are going to have a bad time in both cases.
You can just send a delete for a reaction. I have not tested it recently, but if you see the post again (might need to unblock the user) you should see your warning label there. You can click on it to delete it just like you do with any other reaction on Amethyst.
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This is a thing; Coracle uses @Tagr-bot by Nos to privately send reports
On the privacy part, Blocks/Mutes are private on Amethyst. Reports are always public.
Both have the same effect for you as a user. But are intended to have a separate effect for others.