I think it's a fine system. I haven't been labeled as a bad sport, you know why? Because I'm not an asshole. If someone kills me for no good reason the first thing I do is put a bounty on them. If they kill me again I report them in game and I also report them via Xbox Live (by giving them a negative player review).
Anyone who's making annoying noises over voice chat gets the same treatment. If you can't be an adult and play you deserve to be grouped with people like yourself.
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