I like how Rocket League does it, where you can choose whether to display chat or take it off altogether, whether to display teammates only, you can quickly mute and report people, you can decide not to use voice chat if you want, and so on. I just wish there would be more activity on my reports of toxic people, in my thousandsomething hours I must have gotten a message back that somebody got indeed banned maybe like 8 times, and trust me, it's hard to go 2-3 matches in a row without a toxic idiot there that I reported. I understand that they may not have the resources to monitor what is hundreds of thousands of concurrent players at times.
What can they do to solve that? Maybe use some sort of AI that recognizes whether a person who got mass reported for toxicity did indeed use aggressive words in chat (easy enough in text chat, obviously harder with voice chat) so that he can get banned quick? Maybe actually heavily punish the toxic people out there just to ruin people's games instead of just little warning or couple hour bans? I don't know how it could be improved exactly, but it surely needs improvements because right now multiplayer experiences are way too toxic.