Being capable of filtering what’s worth paying attention to/stressing over is a sign of maturity. I consider people who overreact because someone is having a tantrum or throwing around insults (of any kind, even racial, religious or whatever) to be on the same level as the ones throwing them. Muting such people is enough, yes - and that goes for both sides, muting the ones throwing insults or overreacting to them.
I personally find people who troll a game/intentionally sabotage their team because friends are on the other side, who excessively boast over a win to the point it’s just trying to humiliate the other side, etc. to be much more toxic than someone throwing inane insults, but I won’t go asking for bans on them.
Otherwise, I find it insulting that people want measures to be taken over such tiny, irrelevant and - most important of all - extremely subjective thing, which should be dealt with maturely instead. Can we, who disagree, get you guys reported, lest we risk moving on towards Washed Up Social Justice Bomb?