They're not not binary so yes, the client cannot make assumptions nor to read them nor imply arbitrary meaning automatically and auto send their arbitrary meaning saying that's what the user wanted when it clearly wasn't. Reports should be performed privately between the user and the client and publicly only by the client, so your users are not associated with unwanted content directly.

Reports ARE associating the content with the user of the app. There is no privacy on it. Users are creating an event and putting the reported id on it. Reports ARE NEVER PRIVATE. The name "report" should already tell you that. Mutes are private on Amethyst, but other clients make those public as well. They are all associating the user with the bad content. There is no way to do any of this without that association.