The mute button is NOT a "Get out of Jail free" card-never has been and never will be. When you force someone to use the mute button then the damage has already been done by you. Besides, muting doesn't stop you from being a jerk, it only makes it so I don't have to listen to you continue to be a jerk. By reporting you, people are telling you that that kind of behavior isn't acceptable and needs to stop. Also, how much you spend means nothing when it comes to following the rules.
From Ulanopo's Knowledge Base:
People who report are simply being oversensitive. The mute button exists for a reason.
Lets start with the Riot quote on this (link (http://forums.na.leagueoflegends.com/board/showthread.php?p=30696571#post30696571)):
Why is verbal abuse punishable if there is a mute button/language filter?
Players shouldnt need to rely on features like the mute button or language filter to engage with other players in positive ways. When a player verbally abuses another player and forces him to use the mute button, they have already created a negative experience for that player.
Simply put, Riot says no. You can scream and cry all you want, but it is their house and their rules.
With that out of the way, I think the topic deserves some further discussion. The theory is that, if people resolved to care less, then they would be happier. I often refer to this as Argument from Stoicism and I think it is a fairly weak philosophy because it places the burden on the person being expected to endure the behavior rather than the person exhibiting the behavior. You should be able to handle it is just a flimsy excuse for being a bully or a jerk. I have to be the bigger man so that you can do whatever you want? That hardly seems fair.
There is also the issue of how I spend my limited free time. Like most people, I am constantly required to make value judgments between the different forms of entertainment that are available to me and, let's be honest, we live in an age of nearly limitless entertainment options. If I'm having a bad day in League, I can just fire up Steam and play a whole bunch of games that don't require me to put up with someone's BS.
This is not an issue of weakness or thin-skin; it's a question of choosing activities that don't leave me feeling frustrated and angry. Too many of those experiences and I'll just find something else to do. Riot knows this.
EDITED 18 JULY 2014
I dont think that people should be punished for speech. Other things, like feeding, are much more disruptive.
Im not going to tell you that your opinion is wrong, but you should know that neither Riot nor the majority of the community agrees with you. This is evidenced by the fact that the community has always consistently punished verbal toxicity. There may be some minor disagreement over certain words and phrases, but the overwhelming consensus is that it isnt welcome here.
Also, you arent ever going to get a pass on X because Y is worse. Well still punish you all day for ANY toxicity. Get used to it.