Just because it works doesn't mean it needs to be done, or that we need to allow it, or even that it can't change if we as a community feel like it should be changed.
Sorry, but I don't need to be called names to know of the superior nature of a better player. They prove it through play and I know when I'm outclassed. That goes for real sports, e-sports, whatever. If you feel you HAVE to try to put me on tilt, that means your strategy is weak. it means YOU are weak for resorting to it. Face me and win when both my mind and yours are in the game and we're both focused. Then we know who the better player is.
Demoralization is indeed an effective tactic. It works in warfare all the time. Shock and Awe are time-tested tools that work to this day. However those are blunt force tools. They work when higher strategies are closed off, or they work to open the way for higher strategies to be enacted. It is used in war because in war the consequences for losing and failure are usually rather dire. One takes what they can get and uses what needs to be used. In a sport, losing does not merit anywhere near as drastic a punishment. Demoralization in war can be and in some cases is a necessity. Doing so in sports is an out for cowards unsure in their own chances of victory.
Look at the LCS. There's nothing but respect for eachother in the LCS for the most part. The guys that DO talk trash or rage? Look at where they've gone: Reginald's retired (he knew he had a problem), Saint's running a Curse offshoot team that's struggling to rise higher than Challenger status. Doublelift and his notorious trash-talking ego damn near got kicked out of the LCS entirely this season. Evil Geniuses came into NA talking garbage and they performed terribly and were taken out by even the weaker LCS teams.
Contrast that with, for example, Cloud 9's first appearance on the LCS scene. You know: the season they broke records and stomped faces in. They performed with a clarity and a focus that was unrivaled at the time. They facerolled veteran teams. Never once did Sneaky talk crap, never once did Meteos call another Jungler trash. They didn't need to. They just won, and that was enough.
In real sports, it seems like the same thing holds true. I remember back when the Patriots were the team to beat in American Football. They had a dynasty going and it was absurd. A friend of mine pointed out that he felt like their success was largely due to the attitude that the players and coaching staff took, namely that while some teams celebrated wins that were scraped by, the Patriots, even if they won by a very large margin, remained humble and remarked that though they did win, they didn't feel they were where they needed to be. That they could have done better. In general, it often seems like the teams that are often not as talked about tend to perform best.
True greatness, true skill, true victory, is expressed not by words, but by it's own existence. It speaks volumes about you as a player and you as a person to win on your own skill and strategy against an equal opponent. Why resort to using words and cheap shots when you can simply play the game, and be so damn good at it that you can't be ignored?