I think the description of the system as a report system for intentional teamwounding is pretty useless as the proper way to deal with that is screenshots and a ban thread. I therefore use it as an educating device for the killhungry or careless people. Teamhits can happen, but sometimes it is just clear that they just really want that kill bad.
Of course teamkilling someone because he reported you is retarded, but I have to admit I was completely willing to do that once this past week. I killed the horse of a fast approaching lancer that was about to lance one of my teammates. This teammate then jumpslashes right on top of the downed horseman and then reports me for being unable to stop my 82 speed unbalanced longspear from hitting him in the foot. That guy deserved a longspear through the skull, but I called him names in chat instead.
People that press M whenever they get teamhit are just whiny bitches who think they are important, like every 2h hero out there, very little respect for people that do that. Everybody teamhits, everybody gets teamhit, get over it.