Basically here:
The rules leave leeway for interpretation. That’s fine.
Since they leave leeway for interpretation, each of us has to depend on a personal interpretation when deciding whether to report something or not. That’s also fine.
We also have to depend on a personal interpretation when deciding how to avoid to break the rules. That’s less fine, but it could be acceptable.
In the end, it’s Funcom’s case-by-case interpretation that determines whether we broke the rules. If we knew that interpretation, we could avoid breaking the rules in the future. Funcom admins refuse to communicate that interpretation. That is far from fine.
Personally, I disagree with your interpretation. That said, I don’t think you’re a “villain” for reporting what you see as rule-breaking. If you do it and it results in no action, then you did nothing wrong. If you do it and it results in rightful action, then you did good. If you do it and it results in wrongful action, then Funcom did wrong.
It’s too damn easy for all of us to turn on each other, but it’s Funcom that consistently fails us.
Need I remind you or anyone else that false reports are supposed to be punishable by rules? Has anyone seen that actually happen? Whose fault is that?