Just to cofirm - this really emails the whole admin-moderation staff, and not just the administrator email address? I am asking since the item description (FI locale) suggest that only the admin email gets notified.
On our somewhat popular forum the notification “busyness” was never a issue, even though our old platform (SMF) sent them immediately. It was actually a good feature, since if a troll attacked the forum you wanted him banned quickly until things escalated further. Of course SMF does not have these cool flagging features of hiding and muting.