I think I have a pretty good idea why HTC is resisting the prema squelch, but it is reaching a point where something will have to be done, IMO.
Perhaps, if X percent of those online in an arena (30%? 50%?)squelch an individual then the transcrips get logged and sent to HTC and the individual(s) gets muted until HTC can decide where to go from there. You could even start looking at a person's squelch history, but with human supervision over the process. Penalties could include a week of ch1 muting, a month, suspensions, banning -- whatever was appropriate.
Perhaps the solution is more online moderators but a clearly established code of conduct and maybe even some limits as to what you can discuss on channel one. There are some games that ban political, religious and other sensitive topics.
Whatever the solution, immature idiots can present a bad public face for the game.
Charon