Yep, that's exactly what would happen without a doubt.  Anything that can be abused on the forum will be abused to the max by shitposters, scammers, account farmers, and all the other seedy elements we have lurking about.  The only thing merits should be used for is to reward good posts, not as any other kind of reward.

If any recognition needs to be given to members who make a lot of good reports, maybe Theymos could create that reporter badge thing that was suggested a while back.  I don't see a need for it myself, but I certainly wouldn't involve the merit system in something like that.

I agree, and just speaking for myself I'm not looking for any sort of recognition as far as my reports go.  I'm happy if mods act on them.  That's a reward in and of itself.