I don't care if someone "insults" me as it's all subjective and if the intent is to be obnoxious then that just reflects on their own character, not mine.
Too many people just don't have any insight into their own behavior and will either engage in tit for tat or play the victim and it's not the ones with balance who would be overly engaging in "member moderation" it would be those who take issue with posters rather than the posts made.
Mods shouldn't have to spend their time rifling through multiple reports and if too many people get banned that just limits the forum as a whole.
If it were me (with the ongoing tit for tat nonsense that takes over threads and which I personally find extremely irritating) I'd just be deleting the content of the posts of all those engaging and leave a DELETED message there instead so maybe they'll get the hint and stop engaging in it.
We all have different views about it though which is why we have Mods in the first place. Agree or disagree, someone has to take the lead so we either conform or we go elsewhere.