I think of it like this:
Swearing to objects and NPC's won't cause a mute.
Example: Omg, fucking piece of shit canon decayed again!
Swearing against players can/will cause a mute.
Example: LoL, get lost nigger.
Since the report button is made for offensive language, only offensive language should be bannable. And if someone has profinity filter set to be able to see swear words, you cant report them for swearing on a object when you enabeled it yourself. However, if someone are using offensive language torwards you; it might be offending and you have the right to mute.
Note: I've been muted for 24 hours for using an auto-talker, and I did not offend anyone. (Might be because they dont like macroing, but mutes are made for offensive language, not auto language, so you never know)