It really doesn't matter to the argument why someone wouldn't want to report it. The issue is the state making it a crime to not report it. Of course the majority of sane people would be very likely to report something of this sort. However now the state has taken away your freedom of choice to do so (or not) and will subject you to severe punishment for not reporting such content.
However as someone has already pointed out, this is virtually unenforceable anyhow. That doesn't excuse the state for passing a bs law though.