Yes that is how moderation has worked in some places in the past. It’s also been historically unpaid volunteer work and not particularly effective, especially at large scales. Most of the people here have at least one story about bad moderation on reddit precisely because that kind of moderation is inefficient and heavily influenced by the personal bias of the moderator reviewing a report. You still needed to block people on a regular basis if you wanted to both participate and avoid harassment from a subset of users. That’s how it is all over the internet and there is nothing that can be done to completely remove that element of online activity. Hence the need for thicker skin.