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Your point about relevancy is key. It's not as though there are a bunch of ads for life insurance websites that are using anchor text that applies to florida orange juice - they use anchor text for life insurance to improve their SERPs for those phrases. If people want to report others, report them for irrelevant linking practices.
How hard it would be to determine if link anchor and the content of the page where the link is or even the content of more pages on the site, is similar to the page or site where the link is pointing? Maybe this would be too costly for google....
This way, the advertisers are happy, they still get their PR links and the bloggers are happy to hold on to link selling incomes.