Ultimately all it does is serve to make it EASIER for the real cons because they can hide in the chaos and noise while you go after the "pajeet" scammers. Then after all is said and done we are still left with a huge amount of conflict, disagreement, and fraud as well as a lot of innocent users swept up in it. It is counterproductive.
You don't know that "pajeet" scammers aren't part of larger rings of serial scammers. Not doing anything at all is far worse.
You don't see how it increases somebody's profile? Tell me, there are some members here that have done little to no trading here yet have stacks of great ratings. What are the majority of them related to? Right "scam busting". Real or not quite so real, it doesn't make much of a difference to some of them... it all makes them look more valuable, and there is no penalty to being wrong for them.
Trading shouldn't be the only way to build up a positive reputation. I don't think the majority of non-trade green trust comes from scam busting, but it should be encouraged, not discouraged. If people are rewarded for their positive contributions to the forum, its a motivating factor for them.
Of course the system isn't perfect -- nobody ever said that it was. But the forum shouldn't be regarded as a free for all for scammers any more than it presently is.