You can't generalize like that. We have a police for some reason, and you can report people who beat you, raped you, stole of you, robbed you and whatnot. Would you call that telling on each other as well? Should we stop it, disband all policemen, advocates and judges, and enjoy the fabulous Somalian lifestyle?
If we wouldn't have some rule enforcement on the servers, things would go completely out of hand. Already now people know they can get banned or punished otherwise, and yet they don't stop griefing and trolling and shit.
I think if anything, we need better/other administration, but definitely not less, like you are suggesting here. Usually I hate people who react to problems with more rules, more control and harder punishment, but in the case or cRPG I don't see any alternative, and that's why I refrain from any alternative suggestion. Unless the community - or better: the atmosphere in the community - doesn't change fundamentally, there is nothing you can do about it. With a good community, caring for each other, you can do a lot of things which work perfectly and don't even contain any rules, but with what we have now, where players already hate each other because of the choice of their classes, all you can do is put most people who are accused of something into a gunny sack and beat on it with a club until it stops moving, you will most likely hit the right ones.