... they are added to a list of 'reported posts'
Mm, that does not convince me. I would rather just leave them greyed out and on the bottom number of upvotes and downvotes. And when hovering over the downvotes it could say the list of reasons.
Regarding the economic penalties I think it's a tricky matter.
In case of big payout lawsuits could come out of them. I've seen posts with a 40,000$ payout..