I'm seriously uneasy about it reporting the reporter instead of the one being reported, for two reasons:
1) Privacy. It quite obviously violates the privacy of the one doing the right thing, not of the one doing the wrong thing.
2) Uselessness. The reporter may catch a say or two and use /report. The one reported may run away and do their thing elsewhere. Now instead of one consecutive log of abuses, you get a log with, at best a few, incidents by a whole lot of players.
I seriously don't see any benefit in this. The overall context would be just as well captured if the entire log, including what is received, of the offender was stored. The very low added benefit of a slightly more complete picture IMNSHO does not at all warrant such a liberal breach of privacy. This system feels more like the reporters are the bad guys. Is this the intent?