I think I probably am giving them an unnecessary pass. There is another case in the below links about FB ads where Facebook banned an advertiser's account because of usage of words "panda" and "python".
While that case is unrelated, if someone prescreens the ads without having the required context, (let's be real here, it would be reviewed by someone in Philippines or India, not USA) they are likely to block stuff they do not understand but told to err on the side of the caution - which is what you presumably want to avoid the cases as in this title.
> the rejection can be appealed upon which another person will deal with the rejection review process
It still requires someone to have context about what you are running an advert on. Still hard to find, still not as reliable, and would either end up blocking many legit ads, or passing some objectionable ads. It does not just hurt their bottomline, but the bottomline of every good faith advertiser on the network.
I agree that just reporting post seeing the ad is a poor feedback mechanism. Maybe some sort of AI. They do verify advertisers though as they say. Maybe that should be more stringent.