Agreed. I was mostly asking about any legal issues.

The problems are like you stated. We even see this happen with invalid dcma complaints in moderation-heavy environments. There are certainly safety rails such as rate limited reports per user, etc., but then you need some moderation anyway.

But if the legal requirement is, "take down media if the fbi comes knocking", maybe it's just easier to deal with it that way if there is no budget for moderation.