Haven't had a chance to read through this thread yet but want to make my opinion clear.
Even when you treat insults in a binary manner, there is still room for subjective interpretation. I will make my case for this but if we accept this opinion as true, then surely we must accept that attempting to introduce a new analog scale will be even worse.
So let me make my case, and you can pick it apart. It is simple really. Binary system, no insults allowed. Suppose I'm having a lighthearted "debate" with someone I normally get along with just fine. During the course of some banter we get into a little sarcasm and one of us jokingly says something like "You only believe that because your mother is a whore." Now, anyone with two brain cells to rub together that has been following the conversation and knows even a little bit about the two posters knows the comment is purely in jest and there was zero vitriol behind it. Everyone has a good belly laugh and moves on.
But no, there is a binary no insults rule and the one who made the comment (okay, it might have been me) must be infracted. The forum dies a little. Comedy potential is suppressed because someone can't handle being called an idiot on an anonymous forum.
Now there will be some that chime in to say that crude humor is never funny for whatever pompous "reasons" or "justifications." To that I say, fuck you if you think you get to be the sole judge of what is or is not funny.
Okay, so now is the time when someone rehashes the idea that only the person being insulted is allowed to report the post. Well, don't forget, we tried that and it was a resounding failure. It resulted in a majority vote to allow all insults rather than keeping the rule because it is too easy to post stupid shit that deserves to be insulted just because you know you can piss people off with impunity. Once again, I respond to that idea with a resounding "fuck that noise."
EDIT: I'd like to add that this place will never be a forum for good debate. It is impossible unless a team of highly trained debate mods are acquired. So if you think removing insults will get you your utopia, well you have a better chance of removing every last gun from the general population.