True, but it costs nothing to submit your competitor and given the devastating effect getting de-listed from Google can have on some sites the small chance is worth it.

Ironically enough, I expect Google will get spammed with spam reports.

Are you serious? This is the company that gave us Buzz, the security-flawed thing that exposed everyone's private addressbook such that even one's urologist or gynecologist was exposed, or let your bad, discarded clients get to see all your good clients so that they could contact them.

Second, take for instance an ad campaign I had that contained the word "WordPress" inside. Google publicly stated that this was finally okay and I could place ads having the word WordPress inside. So, I did and so did many other people. Google on WordPress and keep hitting the search button and you'll find many USA companies with search engine sidebar ads that have WordPress in them. But not me. No, not me. My creative gets disapproved on AdWords. Google can't even be consistent in their own policies.