What qualifies as "better"? Twitter has pretty great user flagging, but I still get uncensored porn from people who are not followed by anyone I know in my 'Your Highlights' email, and I have safe settings enabled. I'd say even one exposure to that is enough to put off users. Or the parents of users.
Is this something that necessarily needs to come from a university? All of the things you mentioned seem like skills one would pick up in an entry-level job. Is there something about a job that makes it easier to never develop these habits?
Do you really want every decision you make to be available to everyone you interact with, and then used to judge you? You're that confident in the dirty details of your life?
"In this particular scenario, we were slow to respond and had missteps in handling the false positive. This led the user to be locked out for an extended period of time."
This didn't seem like a case of being "too slow" - the customer in question went through your review process (which was slow, yes), and the only response he got was "We have decided not to reactivate your account, have a nice day".
That just seems like a lack of interest in supporting your customers that are falsely flagged.