There are two problems with that plan:
1. The first part assumes Mojang cares about E-celebs like Dream enough to have his ban bother them. Not to mention we already have people like AntVenom voicing their displeasure about the system anyway.
2. The second part assumes the average person wouldn't be put off by piracy for two reasons: Convenience and Legality.
My guess is that this system has some sort of whitelist that stops reporting against Mojang/Microsoft employees or hell maybe ecelebs (because you can trust big brother

). And for mods / piracy, you kind of needs performance mods to run minecraft stable (like sodium) so I could see people installing
client (No Chat Reports) or
server (NoEncryption) side mods to circumvent.
The major problem I would say is legal/tos, Mojang is probably gonna make a crackdown through litigations or introducing an anti-tamper/'cheat' and banning mods that circumvent. They might go sofar to even go after cracked clients (considering they have the backing of Microsoft). If even litigation trolling gets too much, their plan would be probably to can Java as deprecated and obfuscated, which will give them greater control to add all the features, essentially killing the already fragmented minecraft modding scene
I predicted that there would be a compromise, but they're pulling the harassment card and saying they're gonna stick with the plan, which will probably lead to the legal methods above being used.
That community post is also interesting because of the context, Mojang adds an abhorrent feature, where it's universally despised, and when they get criticism, they choose to cite the 'harassment' ones as their reasons for ignoring criticism all arround, and shaming the nigger cattle for not telling them in 'the appropriate locations' rather than admiting any faults.
If 'the minecraft community' and Mojang are a couple, than Mojang is the abusive and manipulative partner, gaslighting and getting the community to grovel and use their own methods.
The same 'community manager also posted
this (
Archive), handwaving criticism of 'some guys' even though it was very large ecelebs and a large chunk of the so called community.