Chat seems to have a lot more negatives than positives
NOTE - I am probably going to trigger some members of the RBSC(Rito Butt Slappers Club). I would recommend some playdoh and a hot cocoa to relax your feelings. Viewer discretion is advised.
Let's be honest, chat is mostly used for flaming, little else. The negatives clearly outweigh the positives. Let's take a look at both:
Positives of chat:
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Could be a medium to discuss various strategies or important messages in game
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Can sometimes provide interesting conversations
Negatives of chat:
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Cannot be disabled
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Players cannot be granted chat restrictions
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Muted players become unmuted when the game ends
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Frequently used a place to flame and criticize others
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Not useful in group fight or speedy situations as it takes too long to type
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Mostly seems to exist to get players in trouble
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Doesn't reflect intent or tone well and a lot of time, which can increase tensions
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Mostly everything you would need to say in game could be covered by pings
Other things to think about:
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League is famous for being the most toxic game, despite having one of the biggest stances on anti-toxicity. After 6 seasons, the problem has not been solved and it would appear that it is not going to be solved under the current direction.
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Downtime in the game leads to people abusing chat likely more than anything else. If you are dead for 40 seconds or so after a miscommunication, there's little else to do but flame.
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League is one of the few games without mics, even though at its highest level of play, mics are essential to victory. Mics would help humanize players and likely would decrease toxicity.
Overall, it seems the negatives outweigh the positives with chat and with no chat, the amount of reports, bans and suspensions would easily decline by 95% or more. Disabling chat would solve the toxicity problem and could make for a better overall experience for players.