[2022] Toxic chat and reporting

Good question!
There is no way to block only "toxic" chat. You can block toxic people, but not just things that are unpleasant.
The game client has a filter that will auto-report anyone using certain no-no words in an effort to let us slap them with chatbans or even game bans if they show a pattern of egregious behavior. @Ahskance has actually done an amazing job in the last month in revamping our ability to effectively remove the most antagonistic EULA-breakers from the game.
However, when it comes to handling people in the in-game chat, we do not outright censor words in the chat. If someone is bothering you - the best thing you can do is write a CS ticket and we'll handle it. Worst case, you mute them.

mmmmmmm I am not sure how to answer that.
When major issues with community members come up, CS brings it to the Community Managers like myself. We also bring things to them. It's a relationship.
As for the navigation, I don't know of any plans to adjust it.